In most restaurants, waiters receive a large portion of their compensation through tips from customers. Generally, the size of the tip is decided by the customer. However, many restaurants require a 15 percent tip for parties of eight or more. Using the concepts from this chapter, discuss
(a) why the practice of tipping has emerged as a major method of compensating the wait staff.
(b) why the customer typically decides on the amount of the tip.
(c) why restaurants require tips from large parties.