What’s up, doc? As you may be aware of, a growing number of establishments are beginning to flat out ban the practice of tipping. But what if, instead of abolishing tipping, patrons had the option ex ante of giving a “negative tip.” In other words, why is the practice of tipping an asymmetrical one? By way of example, let’s say the standard tip (or “service charge”) for good service at Restaurant A is 20%. Then, in the alternative, why can’t customers deduct up to 20% of their bill for bad service? (It turns out, by the way, that we are not the first to propose this. See this and this.)
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