Pushing back against electronic tipping
J Thoendell stashed this in Tech
Using data from New York City taxi cabs operating out of LaGuardia Airport, American economists Kareem Haggag and Giovanni Paci last year examined the power of tip suggestions. One taxi firm presented its credit card customers with suggested tips of 15 per cent, 20 per cent and 25 per cent. Another firm prompted with 20 per cent, 25 per cent and 30 per cent gratuities. Both charged identical fares and travelled identical routes. Yet the cabbies with higher suggested tips earned substantially more gratuities because of how the choice was presented. “A small change in default tip suggestions has a significant effect on tipping amounts,” the economists discovered.
On a broader scale, perhaps the many vocal advocates of higher minimum wages might want to make general angst about tipping an integral part of their cause. The notion of a living wage for all workers might seem far more attractive to many Canadians if it was packaged with a promise to eliminate the obligation to tip ever again, as is the case in many European countries.