Do Tourists Tip More Than Local Consumers? Evidence of Taxi Rides in New York City

39 Pages Posted: 29 Sep 2017 Last revised: 9 Aug 2018

See all articles by Amir Neto

Amir Neto

West Virginia University, Students

Adam Nowak

West Virginia University

Amanda Ross

University of Alabama - Culverhouse College of Commerce & Business Administration

Date Written: August 6, 2018

Abstract

Given the resurgence of cities as consumer centers and the importance of amenities, we revisit the differences in tipping in taxis between tourists and locals in New York City. Taxi service is an endogenous amenity; however, taxis also contribute to the demand and provision of other amenities. Using data from the New York City Taxi and Limousine Commission, we find that tourists and theatergoers tip more than locals and non-theatergoers, and tourists who are theatergoers tip even more. These differences between tourists and locals may affect the allocation of taxis throughout the city, and hence the provision of other amenities.

Keywords: Taxi, Tourists, Tipping Difference, Allocation, Amenities

JEL Classification: R49, R18, Z39

Suggested Citation

Borges Ferreira Neto, Amir and Nowak, Adam and Ross, Amanda, Do Tourists Tip More Than Local Consumers? Evidence of Taxi Rides in New York City (August 6, 2018). Available at SSRN: https://ssrn.com/abstract=3043799 or http://dx.doi.org/10.2139/ssrn.3043799

Amir Borges Ferreira Neto (Contact Author)

West Virginia University, Students ( email )

Morgantown, WV
United States

Adam Nowak

West Virginia University ( email )

PO Box 6025
Morgantown, WV 26506
United States

Amanda Ross

University of Alabama - Culverhouse College of Commerce & Business Administration ( email )

Culverhouse College of Business
Tuscaloosa, AL 35487-0223
United States

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