Check Here to Tip Taxi Drivers or Save for 401(k)
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April 9 (Bloomberg) -- If you have recently been in a taxiin New York City, you may have noticed a credit-cardtouchscreen, which suggests three possible tips. For rides ofmore than $15, the suggested amounts are usually 20 percent, 25percent or 30 percent. You can give a larger tip, a smaller tipor no tip at all, but it’s easiest just to touch one of thethree conspicuous options.
The touchscreen makes everything simpler. It also raises anintriguing question: Do the suggestions affect the average tip?Behavioral economists would offer a clear prediction: Becausepeople don’t like to do even a little bit of extra work, thesuggestions will matter a lot, and the average tip will increasesignificantly.