The Puzzling Economics of Tipping

Why do we tip—and why does it make absolutely no sense? In this episode, we unravel the strange economics and even stranger psychology behind one of the world’s most confusing social rituals. We explore how tipping is supposedly a reward for good service, yet in practice is driven by guilt, habit, social pressure… and, apparently, the occasional magician. From America’s tip-flation to Japan’s tip-avoidance, we compare global norms, ask whether tipping actually improves service, and examine how restaurants quietly benefit by shifting risk onto workers. Is tipping an efficient incentive, or just an awkward cultural burden we can’t seem to quit?https://www.economist.com/international/2022/01/15/do-tips-make-for-better-service