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    tipping behavior

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    Using one-shot and repeated games, would you expect tipping behavior to differ depending on whether a person is eating in a hometown diner or in a restaurant located in Timbuktu? Please explain.

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    Yes, the tipping behaviour should be different.

    The "game of tipping" in which the waiter must decide the quality of his service and the customer must decide the tip is very different if it's a one-shot game or if it's a repeated game.

    Let's start by considering the case in which you're eating at your hometown diner. This is clearly a repeated game, since chances are that you will ...

    Solution Summary

    Evaluate tipping behavior is examined.