this post was submitted on 17 Aug 2025
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https://freakonomics.com/podcast/why-does-tipping-still-exist-update/
They've been covering it a while, I think that's the most recent version.
You've basically got it- consumers are stupid. Even though tipping doesn't correlate to better service, people want to perceive that non-existant power to guarantee non-existent quality.
Whoa, fascinating, thank you! I never actually thought about the power dynamic...it kind of makes sense especially for what I see at bars sometimes where some douche thinks tipping extra might get him the bartender's phone number or something.