Abstract

The present study evaluated the extent to which reciprocity (equity) theory could explain differential levels of tipping in New York taxi fares. From 2014 to 2017, the database recorded 73 million cab fares; however, only credit transactions (i.e., recording patrons’ tips) were included (28 million fares). Based on a reciprocity hypothesis, patrons in cabs hailed randomly off the street were expected to tip more compared to patrons who arranged travel at a dispatch centre. An analysis of covariance for each of the four years supported this, wherein patrons in hailed cabs tipped twice the percentage (14%) than patrons in dispatched cabs (7%); these results were confirmed using equivalent procedures that assumed neither normality nor variance homogeneity. Several limitations are discussed, as are directions for future research. Keywords: reciprocity, tipping, equity, genuine intention, taxi

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