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

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.