Arbeitspapier
Why do we tip taxicab drivers?
The leading economic explanation for tipping - that is, explanation why the practice is socially beneficial, not why individuals leave tips even though it is not narrowly advantageous to them - is that it confers an incentive to provide personal services. This fits many instances in which tipping is common but does not fit the taxicab business very well. I propose a novel explanation for tipping that does fit the taxi case. It is that tipping amounts to Lindahl pricing of the services of vacant cabs (essentially, reduced waiting time), a local public good for taxi customers.
- Language
-
Englisch
- Bibliographic citation
-
Series: ISER Discussion Paper ; No. 738
- Classification
-
Wirtschaft
Market Structure, Pricing, and Design: General
Asymmetric and Private Information; Mechanism Design
- Subject
-
tipping
taxicabs
Lindahl pricing
social norms
- Event
-
Geistige Schöpfung
- (who)
-
Flath, David
- Event
-
Veröffentlichung
- (who)
-
Osaka University, Institute of Social and Economic Research (ISER)
- (where)
-
Osaka
- (when)
-
2009
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Flath, David
- Osaka University, Institute of Social and Economic Research (ISER)
Time of origin
- 2009
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