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Sports sentiment and tipping behavior

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  • Ge, Qi

Abstract

This paper utilizes a high frequency dataset on taxi rides in New York City to investigate how emotions due to sporting event outcomes affect passengers’ tipping behavior. I formulate and empirically test a reference-dependent preferences framework of tipping behavior. The results indicate that the tipping amounts are driven by deviations from expectations much more so than wins and losses, with the most salient effects found under unexpected close wins. However, there is no support for loss aversion. The findings suggest that loss averse behavior may be subdued in the presence of social norms while surprises can result in freedom on the upside of tipping.

Suggested Citation

  • Ge, Qi, 2018. "Sports sentiment and tipping behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 95-113.
    • Handle: RePEc:eee:jeborg:v:145:y:2018:i:c:p:95-113
    DOI: 10.1016/j.jebo.2017.10.016
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    References listed on IDEAS

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    Cited by:

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    3. Kikuta,Kyosuke & Ono, Yoshikuni, 2024. "Global Evidence for the Relevance of Irrelevant Events: International Soccer Games and Leader Approval," IDE Discussion Papers 942, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Weiqiang Tan & Jian Zhang, 2021. "Good Days, Bad Days: Stock Market Fluctuation and Taxi Tipping Decisions," Management Science, INFORMS, vol. 67(6), pages 3965-3984, June.
    5. Elif Aydin, Asli & Acun, Yüksel, 2019. "An investigation of tipping behavior as a major component in service economy: The case of taxi tipping," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 114-120.
    6. Minnich, Aljoscha, 2022. "Do fans’ emotions influence charitable donations? Evidence from monetary and returnable cup donations in German soccer stadiums," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    7. Tushar Bharati & Adnan M. S. Fakir, 2022. "Health Costs of a “Healthy Democracy”: The Impact of Peaceful Political Protests on Healthcare Utilization," Economics Discussion / Working Papers 22-15, The University of Western Australia, Department of Economics.
    8. Andrea Schertler & Jarmo Beurden, 2023. "How relative competitive strength moderates stock price responses after European soccer tournaments," Journal of Business Economics, Springer, vol. 93(8), pages 1385-1414, October.
    9. Qi Ge & Ignacio Sarmiento Barbieri & Rodrigo Schneider, 2021. "Sporting Events, Emotional Cues, And Crime: Spatial And Temporal Evidence From Brazilian Soccer Games," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 375-395, January.
    10. Hoover, Hanna, 2022. "Nudges as norms: Evidence from the NYC taxi cab industry," Journal of Economic Psychology, Elsevier, vol. 92(C).
    11. Uzmanoglu, Cihan, 2022. "The stock market tips," Journal of Empirical Finance, Elsevier, vol. 67(C), pages 271-287.
    12. Frank, David G. & Lynn, Michael, 2020. "Shattering the Illusion of the Self-Earned Tip: The Effect of a Restaurant Magician on Co-Workers’ Tips," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).

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    More about this item

    Keywords

    Reference-dependent preferences; Tipping behavior; Social norms;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Z2 - Other Special Topics - - Sports Economics

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