Tipping as a Strategic Investment in Service Quality: An Optimal-Control Analysis of Repeated Interactions in the Service Industry

作者: Ofer H. Azar , Yossi Tobol

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摘要: We present an optimal-control model where tipping behavior creates reputation that affects future service. Tipping and can evolve in four path prototypes: converging to interior equilibrium; minimum tips reputation; two prototypes start differently but end with increasing indefinitely. Analyzing the equilibrium suggests when erodes more quickly (capturing lower patronage frequency), is lower. Interestingly, however, may be higher. Increasing minimal tip raises by same increase, does not change reputation. A patient customer leaves higher reaches a

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