Tipping doesn't improve service, study finds
Tipping doesn't improve service; most tip out of conformity, not appreciation.
Why it matters
- Study challenges belief that tipping improves service.
- Explores motivations behind tipping.
By the numbers
- Americans spend ~$500/year on tips.
- U.S. tipping system: >$50 billion annually.
The big picture
- Tipping rates rise over time due to social conformity.
- May reflect growing economic inequality.
What they're saying
- Some see tipping as a way to underpay employees.
- Anecdotes suggest tipping doesn't always improve service.
Caveats
- Theoretical study based on a model.
What’s next
- Explore alternative compensation models.