Question

The decision to tip a server is a(n): example of behavior based on risk aversion. rational decision if the person leaving the tip is concerned about fairness. irrational economic decision because it reduces the economic payoff of the tipper. example of decision making using bounded rationality.

Answer 1

Answer: a rational decision if the person leaving the tip is concerned about fairness.

Explanation:

Tipping a server or waiter is rational only when the decision is based or concerned about fairness otherwise it may not be logical to tip a server.

Rational decision making favors target information and a proper procedure of examination over subjectivity and instinct.