Aug 9, 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!