Sunday, June 01, 2008

Tips, Tastes and Preferences


After carrying a golf bag for a golfer at the country club, Miranda*, received a $10 tip. She works in the pro shop where 4 of the 5 workers are female. The workers pool their tips so that the tip are evenly distributed to account for weather and peak playing periods. But I think the tips are pooled because men golfers have a distinct preference for female waitresses. These tastes and preferences are well defined and lead to occupational crowding described in Thomas Schelling's "Dynamic Models of Segregation" 1971, 143-86. Of course, the dynamics of the tip can be disaggregated by game theory.
The golfer is a local resident so has an incentive to tip or the golfer will receive bad service the next time. The tip is a commitment device. The higher tip will attract more females into the seasonal occupation crowding males into traditional area of course maintenance.

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