The Limitations of American Restaurants’ No-Tipping Experiment – The New Yorker

“So why should no-tipping establishments lose business?

New research by Lynn shows that when restaurants move to a no-tipping policy, their online customer ratings fall. One factor that explains that dissatisfaction is how we, as consumers, respond to “partitioned” prices versus “bundled” prices. A partitioned price divides the total cost of an item into smaller components…Consumers tend to perceive partitioned prices as cheaper than bundled ones.”