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 :- http://bp.bookpi.org/index.php/bpi/catalog/book/185
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