TEL  Vol.5 No.3 , June 2015
Modeling the Relationship between Restaurant Tipping and Consumer Behavior
Author(s) Tin-Chun Lin
ABSTRACT
The theory of consumer choice was applied to model the relationship between restaurant tipping and consumer behavior. Using this model, we showed how consumer behavior responds to restaurant tipping and how tipping affects consumer-utility among different types of consumers and economic efficiency. The theoretical analysis reveals that tipping discourages customers’ demand for restaurant meals, which in turn creates bigger excess burden in the market.

Cite this paper
Lin, T. (2015) Modeling the Relationship between Restaurant Tipping and Consumer Behavior. Theoretical Economics Letters, 5, 389-395. doi: 10.4236/tel.2015.53044.
References
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