Tipping Economics
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Tuesday, October 2, 2007
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Greg Mankiw observes that “Economists do not have a good theory of tipping.” King Banian contends this is untrue and then demonstrates that economists have many theories of tipping.
Whether any of them amounts to a good theory, however, I shall leave to the reader to decide.
About James Joyner
Mankiw’s theory of tipping probably involves a pigouvian tax on the gasoline used by the waiters driving to work and writing a number of excuses for Bush’s horrible fiscal policies on the check.
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In a *real* science, having *many* theories means that you don’t have a *good* theory.
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I’m sorry could we get a list of those areas for which Economists *do* have good theories?
I promise it won’t take long to compile.
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Do any of the economists involved have only one hand?
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Economics of Tipping…
Greg Mankiw says "economists don't understand tipping." King Banian says, I think, that economists have too many theories of tipping. (HT: Joyner) Tipping in a restaurant where you eat regularly has an easy economic explanation. You&apos…
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