Tips and information
Exercise
How can you explain the remuneration patterns in tipping in terms of the basic scheme explained in the theory? Where do you expect higher heterogeneity in service quality? Which compensation pattern is expected to generate fewer incentives for providing high quality service for non-repeating purchasers?
Analysis
Maybe we give tips so that they take care of us well in next visits to that establishment. For that reason, we should observe that people tip more in restaurants they visit often. Nevertheless, tips also are given (less often) in highway bars. Why? Signaling to companions? How would you test it?
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