Any difference in behaviour between North Americans (who do tip) and foreigners (who don’t) is by definition economically irrational behaviour, because economics predicts that a rational consumer would seek to pay as little as possible. The actual behaviour may be rational from a social perspective (social pressures, signalling, etc) but it is economically irrational to pay more than required.
Tipping in this way functions no differently from hidden fees in that consumers do not accurately take them into account when purchasing, even when the information is publicly available and widely known. That foreigners do not tip is a cultural (irrational) difference, not a calculated difference. In some sense it’s no different than other cultural differences that annoy locals, such as public spitting or littering.
As for broader trends in terms of how often people eat out, those tend to be economically rational. People don’t tend to go deeply into debt to continue eating out when they can’t afford it, though there is likely a small percentage of exceptions. In general though, the existence of tipping means people eat out less often than they otherwise would.
Any difference in behaviour between North Americans (who do tip) and foreigners (who don’t) is by definition economically irrational behaviour
The difference between foreigners and Americans isn’t relevant, since the benchmark is maximizing value.
because economics predicts that a rational consumer would seek to pay as little as possible
Good thing I said that the article was about foreigners not tipping while in the US, which by your own definition is not irrational behavior, quite the opposite.
In some sense it’s no different than other cultural differences that annoy locals, such as public spitting or littering.
Nice examples. I wouldn’t put “refusing to participate in a custom exclusive to the US that has historically been weaponized to keep wages as low as possible”, at the same level as spitting or littering, but that’s just me I guess.
Let’s say that I refuse to go to a restaurant staffed exclusively by 14 year olds, because I don’t like child labor, would that annoy you too?
In general though, the existence of tipping means people eat out less often than they otherwise would.
Right. That’s what I said in my previous message: people take tipping into account before going out, especially when they are economically constrained.
It honestly feels like either you didn’t really read my comment, or a LLM wrote your response.
Honestly, it’s not even worth talking to you. You’re intent on interpreting everything I say in the most uncharitable way possible in order to elevate the toxicity of the discussion and win points for your imagined side, rather than learn anything.
The saddest thing is how common people like you are on lemmy. My block list grows ever longer…
Any difference in behaviour between North Americans (who do tip) and foreigners (who don’t) is by definition economically irrational behaviour, because economics predicts that a rational consumer would seek to pay as little as possible. The actual behaviour may be rational from a social perspective (social pressures, signalling, etc) but it is economically irrational to pay more than required.
Tipping in this way functions no differently from hidden fees in that consumers do not accurately take them into account when purchasing, even when the information is publicly available and widely known. That foreigners do not tip is a cultural (irrational) difference, not a calculated difference. In some sense it’s no different than other cultural differences that annoy locals, such as public spitting or littering.
As for broader trends in terms of how often people eat out, those tend to be economically rational. People don’t tend to go deeply into debt to continue eating out when they can’t afford it, though there is likely a small percentage of exceptions. In general though, the existence of tipping means people eat out less often than they otherwise would.
The difference between foreigners and Americans isn’t relevant, since the benchmark is maximizing value.
Good thing I said that the article was about foreigners not tipping while in the US, which by your own definition is not irrational behavior, quite the opposite.
Nice examples. I wouldn’t put “refusing to participate in a custom exclusive to the US that has historically been weaponized to keep wages as low as possible”, at the same level as spitting or littering, but that’s just me I guess.
Let’s say that I refuse to go to a restaurant staffed exclusively by 14 year olds, because I don’t like child labor, would that annoy you too?
Right. That’s what I said in my previous message: people take tipping into account before going out, especially when they are economically constrained.
It honestly feels like either you didn’t really read my comment, or a LLM wrote your response.
Honestly, it’s not even worth talking to you. You’re intent on interpreting everything I say in the most uncharitable way possible in order to elevate the toxicity of the discussion and win points for your imagined side, rather than learn anything.
The saddest thing is how common people like you are on lemmy. My block list grows ever longer…
The irony of calling me “toxic” when you block anyone calling you out.