Fewer cheat in Austria, Vienna, Germany

 

JULY 11, 2012 Wed

When the Rule Is 'Pay What You Want,' Almost Everyone Pays

Only 0.5% of patrons take advantage of the opportunity to eat for free at the pay-what-you-want Wiener Deewan self-service Pakistani restaurant in Vienna, say Gerhard Riener of the University of Jena and Christian Traxler of the University of Marburg, both in Germany. Over the course of two years, customer payments stabilized at an average of 5 euros, well above the restaurant's costs, while the number of daily guests increased by more than 50%, boosting revenue. The restaurant also benefits from fixed prices for drinks.

Source: Norms, moods, and free lunch: Longitudinal evidence on payments from a Pay-What-You-Want restaurant