What do we know about tipping?

How do we know what to tip and how much to tip? In the article what do we know about tipping it points out where some tips are higher for others in different areas, an example of this would be tips are higher in sunnier weather. Also, a server at a restaurant can do things that can raise the tip examples are getting at eye level with the customer, or giving additional information. Some people do not believe in tipping at all, a good statement was made about this “Is tipping any harder to explain then why we don’t just leave the restaurant without paying for the food.” I believe that is very true being a server. So how do you feel about tipping?

1 comment:

Dr. Tufte said...

The most basic thing economists know about tipping is to not do it before service is rendered (or alternatively don't agree to a fixed service charge - say for a large table).

Tipping is a form of performance bond. That is, a payment that is made conditional on some performance taking place.

Interestingly, you could also do this by paying servers more, but having them place some money on the table which the patrons could keep if they were not happy. This is, in fact, how construction projects that have to be finished by a set date are often guaranteed.