Question: Consider two Italian restaurants located in identical towns 200 miles
Consider two Italian restaurants located in identical towns 200 miles apart. The restaurants are identical in every respect but their tipping policies. At one, there is a flat $15 service charge, but no other tips are accepted. At the other, a 15 percent tip is added to the bill. The average food bill at the first restaurant, exclusive of the service charge, is $100. How, if at all, do you expect the amount of food eaten in the two restaurants to differ?
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