In 2009, New York taxis processed credit card payments on screens built by two competing vendors. One suggested tips of 15, 20, or 25 percent. The other suggested 20, 25, or 30 percent on fares above $15. Same city, same cabs, same riders. The only difference was the buttons.
Economists Kareem Haggag and Giovanni Paci analyzed 13 million of those rides. The higher suggestions raised the average tip by 27 to 30 cents over a baseline of $2.22, roughly 12 percent more money from nothing but a label change. Multiplied across New York's ride volume, the buttons were worth millions of dollars a year.
There was a catch. Screens with the higher suggestions were over 50 percent more likely to receive no tip at all. Push the anchor too high and some riders push back with zero. Psychologists call that reactance, and the authors flagged it as the built-in cost of an overreaching default.
Their 2014 paper described the setup as a case in which default effects were exploited by a for-profit industry. Then tablet point-of-sale systems carried the same three-button screen to every coffee shop, food cart, and bakery in the country, with the percentages creeping upward and the escape hatch shrinking. The experiment never ended. It changed venues.