Zarrabian, Dario2020-08-282019-052019-10-252019Zarrabian, Dario. 2019. Tip Nudging: A 3-Part Experimental Analysis of Influencing Tips Through Technological Default Menus. Bachelor's thesis, Harvard College.https://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37364598Restaurants and services are increasingly using technologically innovative point of sale iPad systems that offer default tipping amounts in their payment services. In this paper, I study the impact of these default tip suggestions through a behavioral economics lens. I first provide a meta-analysis of research on psychological tactics that waiters can use to increase tips. I then examine the effect that default suggestions have on consumer tipping using a series of experiments and a quasi-experiment. First, I show that higher default options anchor customers at higher tipping amounts. Second, I providence evidence that whiplash effects through reactance exist for anchoring customers at overly large amounts, creating negative downstream effects and feelings towards the restaurant. Third, using data from the field, I show that higher suggestions can induce higher tips in a fast-casual field setting, adding over 12\% in tips to a restaurant in Cambridge, MA. The first two results are based on lab experiments and the last is based on a regression discontinuity design. Finally, further channels of research and implications are discussed.application/pdfenThesis or Dissertation2020-08-28