Editing Gratuity (section)

==Reasons for tipping==
Tipping researcher Michael Lynn identifies five motivations for tipping:<ref>{{cite web |url=https://www.pbs.org/newshour/economy/why-do-we-tip |title=Why do we tip? |website=[[PBS]] |date=26 March 2016}}</ref>
* Showing off
* To supplement the server's income and make them happy
* For improved future service
* To avoid disapproval from the server
* A sense of duty

A 2009 academic paper by Steven Holland calls tipping "an effective mechanism for risk sharing and welfare improvement" which reduces the risk faced by a service customer, because the customer can decide whether or not to tip.<ref>Steven J. Holland. "Tipping as risk sharing." ''The Journal of Socio-Economics''. Volume 38, Issue 4, August 2009, pages 641–647</ref> Tipping is sometimes given as an example of the [[principal–agent problem]] in economics. One example is a restaurant owner who engages servers to act as agents on his behalf.<ref name="videbeck">{{cite news |url=https://www.cis.org.au/app/uploads/2015/04/images/stories/policy-magazine/2004-summer/2004-20-4-steen-videbeck.pdf|title=The Economics & Etiquette of Tipping|work=[[The Centre for Independent Studies]]|last=Videbeck|first=Steen|date=Summer 2004–05|access-date=July 21, 2017}}</ref> In some cases, "[c]ompensation agreements [can] increase worker effort [...] if compensation is [...] tied to the firm's success" and one example of such a compensation agreement is waiters and waitresses who are paid tips.<ref name="graham">Robert J. Graham. ''Managerial Economics for Dummies''. John Wiley & Sons, Feb 14, 2013</ref> Studies show however that, in the real world, the size of the tip is only weakly correlated with the quality of the service and other effects dominate.<ref name="freak" />