Question
8.You live in Italy and as most folks who live there, you never tip cab drivers. However, one week you go abroad, and take a
8.You live in Italy and as most folks who live there, you never tip cab drivers. However, one
week you go abroad, and take a taxi to a friend's house who lives in the countryside in a
countrywhere there is a normfor tipping taxi drivers.A70-year-old meek looking and frail
taxi driver delivers you safely to your destination. Would you honor the norm of tipping
him or just walk away? Suppose you answered that you would pay the tip. Is your behavior
consistent with classical game theory? If not, then which feature of classical game theory
could be altered to explain your tipping behavior?
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