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Thursday, October 27, 2005

Indifference to Restaurant Service

My son is in college and taking economics courses. We meet for dinner once a week:

Me: The service in here is awful. This is making me really mad.

Son: Why? They're saving you money. Won't you just reduce the tip until you are indifferent?

I wanted a reason to be mad, not indifferent. I was hungry and pretty cranky, so I explained, curtly, how market failure in the food service industry made it so that reducing the tip would not fully compensate me for my losses. I was then told, in so many words:

Son: That's a dumb argument.

And it was. But don't tell him I admitted that. I did reduce the tip, and even though I didn't reduce it very much, I'd feel better now if I hadn't. I'll see if Mr. Smarty Pants can explain that.

    Posted by on Thursday, October 27, 2005 at 08:05 PM in Economics, Miscellaneous | Permalink  TrackBack (0)  Comments (8)

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