Freakonomics Radio 396. Why Does Tipping Still Exist?
Nov 7, 2019
Join John List, a leading economist from the University of Chicago and chief economist at Lyft, alongside Danny Meyer, hospitality innovator and founder of Shake Shack, as they dive into the curious world of tipping. They explore how tipping has evolved over time and its surprising effects on service workers. List shares insights from innovative field experiments, while Meyer explains the challenges and benefits of moving towards a no-tipping model in restaurants. Together, they unravel the psychology and economic implications behind this age-old practice.
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History of Tipping
- Tipping's origins are debated, potentially dating back to Roman times or 17th-century England.
- Prominent figures like Mark Twain historically criticized tipping as unjust extortion.
The Economics of Tipping
- Economists find tipping behavior intriguing due to its inconsistencies across similar service settings.
- Stephen Dubner questions his own tipping habits, highlighting the complex norms governing tipping.
Discriminatory Tipping
- Tipping can be discriminatory, influenced by factors like race, gender, and appearance.
- Michael Lynn's research highlights that Black servers are often tipped less than white servers, regardless of service quality.