Tipping is about the perception of social class and giving the buyer the perception of having power over others, by giving them a mini power-trip. In no other circumstances is a unilateral and after the fact negotiation acceptable. Would YOU work for a variable salary with no clear criteria on what affect it, no guarantee of salary regardless of your skills an effort and for which studies have shown that the colour o…
The problem is that two equilibria exist. The equilibrium of a tipping culture is reinforced by high-performing wait staff. If one restaurant or one city adopts a no-tipping policy, the well-tipped will move, the poorly-tipped will stay, and quality will suffer. The other problem is that the tipping culture has created many extrinsically motivated workers. Cultures without tipping require people who intrinsically per…
In terms of incentive, what about firing the low-performers, like in other industries.
You are implying that tipping as an incentive works, I disagree, in my experience people tip based on the overall experience and a large part of that is taste which the wait staff has no influence over. What about a bonus for everybody, based on the profit made that month?