View Single Post
  #7  
Old 11-30-2007, 05:54 AM
Benholio Benholio is offline
Senior Member
 
Join Date: Jun 2004
Posts: 2,411
Default Re: PDT 2/2 : Why has tipping increased?

Lets imagine there is some combination of economic and social factors that control how much the average tipper can afford/is willing to tip. We'll call this the 'tipping environment'.

Lets say the previous standard was 15%, but now there is a rise in the 'tipping environment'. Suddenly your average tippers feel good about tipping 15-18%. They feel good putting down that tip that is bigger than the previous standard. Your big tippers now need to tip even higher to retain their big tipper status. Everyone except the bad tippers has started to tip more, so the standard is raised.

Now lets say that the next year is a bad one for the tipping environment. Your average tippers are tipping 17% based on the previous standard, but who is going to be the one to start tipping 15% again? Average tippers don't like tipping below the standard, thats why they are average tippers. It was fun to be the early adopter that started tipping 17% and feel generous, but nobody wants to be the jerk that starts tipping below standard all of the sudden. Since the average tippers haven't lowered their standard, the big tippers can't either, or they won't be big tippers anymore.

So the standard can really only go up or stay the same. The average tipper doesn't want to tip below the standard, so it never goes down.

Its kind of like blackjack. Once you start raising your bet, you can't go back down.
Reply With Quote