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Actually, this runs counter to the theory that tipping addresses the principal-agent problem wherein an owner cannot observe the behavior of all employees, but
by gnicholas 4y ago
Actually, this runs counter to the theory that tipping addresses the principal-agent problem wherein an owner cannot observe the behavior of all employees, but the person being served can. According to this theory, the tip is supposed to reflect the quality of service, and therefore must be paid after service is rendered.