Consumer Tipping: A Cross-Country Study

Abstract

Tipping differs from most economic transactions in that consumers who tip are paying a nonobligatory amount for a service that has already been received. Academic research on this unique yet pervasive consumer behavior has focused on the determinants of individuals' tipping decisions. Little attention has been directed at macro-level issues such as cross-country differences in tipping practices and norms. This article addresses this deficiency by presenting and testing the theory that cross-country differences in the prevalence of tipping reflect cross-country differences in values. Results of the study generally support the theory.