A large-scale data-based investigation on the relationship between bad weather and taxi tipping

Do consumers become stingy tippers in inclement weather? Prior literature suggests that such weather induces negative moods, which in turn leads to stingy tipping. In this paper, on the basis of New York City taxi tipping data merged with corresponding real-time weather data, we provide different perspectives on weather-induced mood effects that take into account ambient environments provided by indoor services under inclement weather. In addition, we show that reciprocity effects triggered by taxi drivers’ extra efforts in rainy or snowy weather conditions contribute to eliciting generous taxi tipping. In our investigation, precipitation and whether extreme temperature conditions are present or not are analysed after controlling for speed, fare amount for a trip, borough, taxi vendor company, and driver fixed effects. The implications are discussed in relation to weather-driven reciprocity effects and relativism of weather-driven mood effects on generosity.