When you are a regular customer at a given restaurant, developing a reputation as a good tipper presumably results in better service, while developing a reputation as a lousy tipper presumably results in an increased frequency of "spitters." In contrast, using our recent trip to Hawaii as an illustration, I noted that when one will only interact with a waiter once (or are interacting for the last time), it's economically irrational to tip. After all, you'll never be back, so there's no chance for better service but there's also no risk of a spitter. As I put it, in a one time or final period setting, a hard-hearted economically rational actor wouldn't tip.
So, about Hawaii: did he or didn't he?
