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Author:Bodvarsson, O.
Gibson, W.
Title:Economics and restaurant gratuities: determining tip rates
Journal:American Journal of Economics and Sociology
1997 : APR, VOL. 56:2, p. 187-204
Index terms:ECONOMICS
SOCIOLOGY
RESTAURANTS
Language:eng
Abstract:Is tipping in restaurants simply a social norm where people tip on the basis of some rule of thumb (15% of bill size for example)? Using evidence gathered from surveys of nearly 700 diners in 7 Minnesota restaurants, it is argued that tipping is both a social norm and a means of rewarding good service. Survey evidence suggests that diners use rules of thumb as starting points and then vary gratuities on the basis of service just received, expected future service, whether they dine alone or with a group, alcohol consumption and location of the restaurant.
SCIMA record nr: 161136
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