Problem

TippingOne of the main tenets of economic analysis is that people act in their narrow self...

Tipping

One of the main tenets of economic analysis is that people act in their narrow self-interest. Why then do people leave tips in restaurants? If a study were to compare the size of tips earned by servers in restaurants on interstate highways with those in restaurants near residential neighborhoods, what would you expect to find? Why?

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Solutions For Problems in Chapter 4