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Rounding and the bill-size gradient in tipping

SocArXiv · Reports
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consumer-behavioreconomicspolitical-sciencepreprintsocial-sciencesociology
Restaurant tip percentages often decline as bills increase. Rounding is one proposed explanation because a fixed upward adjustment adds more to the tip percentage on a small bill. We examine how much of the observed decline can be explained by adjustments of up to one dollar. We analyzed 22,446 chec
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