On the Complementarity of Prosocial Norms: The Case of Restaurant Tipping During the Holidays

10 Pages Posted: 25 Feb 2014

See all articles by Adam Eric Greenberg

Adam Eric Greenberg

Bocconi University - Department of Marketing

Date Written: March 1, 2013

Abstract

The literature in economics overwhelmingly supports the hypothesis that people have (pure and impure) preferences for altruism. It has also been shown that prosocial acts or norms that dictate prosocial behavior can sometimes crowd out other prosocial behaviors. This paper tests whether a well-understood prosocial norm — generosity during the holiday season (i.e., around Christmas) — crowds out or complements tipping behavior, another prosocial norm. By examining seasonal differences in within-customer tipping behavior using two years of sales data from a busy restaurant, I find that during the holiday season tipping rates are higher, not lower. This effect appears to be driven by those who are already generous. The finding suggests that individuals do not necessarily view two prosocial norms as competing; rather, such norms can be complementary. Motives for prosocial norms like tipping are discussed.

Keywords: Social norms, prosocial, altruism, tipping, holidays, Christmas

JEL Classification: A13, D6, Q11, J00

Suggested Citation

Greenberg, Adam Eric, On the Complementarity of Prosocial Norms: The Case of Restaurant Tipping During the Holidays (March 1, 2013). Journal of Economic Behavior and Organization, Vol. 97, 2014, Available at SSRN: https://ssrn.com/abstract=2400856

Adam Eric Greenberg (Contact Author)

Bocconi University - Department of Marketing ( email )

Via Roentgen, 1 (4th floor)
Milan, MI 20136
Italy

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