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Incentives and service quality in the restaurant industry: the tipping-service puzzle

APPLIED ECONOMICS, no. 15 (2009): 1917-1927

Cited by: 55|Views8
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Tipping is a significant economic activity (tips in the US food industry alone amount to about $42 billion annually) that was claimed to improve service quality and increase economic efficiency, because it gives incentives to provide excellent service, and therefore allows to avoid costly monitoring of workers. The article suggests that t...More

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