Why Does Tipping Still Exist? (Update)

This Freakonomics Radio episode delves into the complexities of tipping, exploring its history, economic impact, and social implications. The episode features insights from economists like John List and Uri Gneezy, who conducted experiments on tipping behavior, as well as restaurateur Danny Meyer, who attempted to eliminate tipping in his restaurants to address wage disparities between front-of-house and back-of-house staff. The discussion covers the motivations behind tipping, its correlation with service quality (or lack thereof), and the challenges faced by businesses trying to move away from the traditional tipping model. Despite the controversies and inequities associated with tipping, the episode suggests that it's likely to persist due to deeply ingrained social norms and customer expectations.