Default Tips

A-Tier
Journal: American Economic Journal: Applied Economics
Year: 2014
Volume: 6
Issue: 3
Pages: 1-19

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine the role of defaults in high-frequency, small-scale choices using unique data on over 13 million New York City taxi rides. Using a regression discontinuity design, we show that default tip suggestions have a large impact on tip amounts. These results are supported by a secondary analysis that uses the quasi-random assignment of customers to different cars to examine default effects on a wider range of fares. Finally, we highlight a potential cost of setting defaults too high, as a higher proportion of customers opt to leave no credit card tip when presented with the higher suggested amounts.

Technical Details

RePEc Handle
repec:aea:aejapp:v:6:y:2014:i:3:p:1-19
Journal Field
General
Author Count
2
Added to Database
2026-01-25