Thu. Jul 2nd, 2020


Science Press Release Distribution Services

Restaurant Tipping and Consumer Behavior: An Economic Theoretical Analysis

1 min read

In this chapter, I applied the theory of consumer choice to model the relationship between restaurant tipping and consumer behavior. Using this model, I demonstrated how consumer behavior responds to restaurant tipping and how tipping affects consumer-utility among different types of consumers and economic efficiency. The economic theoretical analysis reveals that tipping discourages customers’ demand for restaurant meals, which in turn creates bigger excess burden in the market.

Author(s) Details

Tin-Chun Lin
School of Business and Economics, Indiana University Northwest, Gary, IN 46408, USA

View Book :-

Leave a Reply

Your email address will not be published. Required fields are marked *