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I found this Freadonomics episode [1] enlightening. A lot of restaurants have tried to have "no tipping" policies, but they usually revert after they lose busin
by zonotope 4y ago
I found this Freadonomics episode [1] enlightening. A lot of restaurants have tried to have "no tipping" policies, but they usually revert after they lose business due to the higher prices.
Tipping also allows for price discrimination (a good thing in an economic sense). People who are well off tend to pay more, but people who can't pay as much can still be customers.
I find it really annoying too, but there are some reasons to keep it around. 30% is just crazy though.
[1] https://freakonomics.com/podcast/why-does-tipping-still-exist-ep-396/ https://freakonomics.com/podcast/why-does-tipping-still-exis...