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Peer effects on restaurant tipping in Norway: An experimental approach

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  • Thrane, Christer
  • Haugom, Erik

Abstract

Research shows that many factors affect restaurant patrons’ tipping behavior. In this study from Norway, we use an experimental approach to examine a new factor: the influence of peers. We show that the tipping behavior of dining companions – i.e. peers – affects restaurant patrons’ likelihood of providing a tip as well as their provided tip amounts. We interpret this as a form of social pressure enforcing a weak Norwegian tipping norm. The size of the bill and perceived service quality also affect tipping behavior and moderate the peer effects (i.e. effect heterogeneity). We conclude that peer effects might play an important role in future tipping research focusing on the determinants of individual tipping practices.

Suggested Citation

  • Thrane, Christer & Haugom, Erik, 2020. "Peer effects on restaurant tipping in Norway: An experimental approach," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 244-252.
    • Handle: RePEc:eee:jeborg:v:176:y:2020:i:c:p:244-252
    DOI: 10.1016/j.jebo.2020.04.010
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    References listed on IDEAS

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    More about this item

    Keywords

    Tipping behavior; Stiffing; Experiment; Peer effects; Bill size; Service quality;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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