Quotulatiousness

August 10, 2017

Words & Numbers: Has Tipping Gone Out of Control?

Filed under: Business, Economics — Tags: , , — Nicholas @ 04:00

Published on 9 Aug 2017

In 1922, famed etiquette writer Emily Post advised her readers that 10% is the standard for tipping your waiter. Since then, “gratuity creep” has been so steady that tip jars are now ubiquitous and 25-30% is considered the rule in New York City. Uber once resisted this trend, but recently added a tipping feature to its app.

What is the economic rationale behind tipping? Does the usefulness of tipping diminish the more that a certain rate becomes an expectation? At a certain point, would it be better to do without the fuss involved and simply include that portion of a service-provider’s compensation in the wages paid by the employer?

Our valiant hosts, Antony Davies and James Harrigan explore these questions and more!

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