April 9 (Bloomberg) -- If you have recently been in a taxi
in New York City, you may have noticed a credit-card
touchscreen, which suggests three possible tips. For rides of
more than $15, the suggested amounts are usually 20 percent, 25
percent or 30 percent. You can give a larger tip, a smaller tip
or no tip at all, but it’s easiest just to touch one of the
three conspicuous options.
The touchscreen makes everything simpler. It also raises an
intriguing question: Do the suggestions affect the average tip?
Behavioral economists would offer a clear prediction: Because
people don’t like to do even a little bit of extra work, the
suggestions will matter a lot, and the average tip will increase
significantly.