What is gratuity?

What Does gratuity Mean

Gratuity is a term that comes from the French gratuité , in turn derived from a word from medieval Latin. Gratuity refers to the condition of gratuitousness (of grace or that lacks foundation).

The most common use of the concept is in economics . In this context, it refers to the gratuity of a service or a good when they are dispensed without the beneficiary making a consideration .
Gratuity, therefore, assumes that the service or the good has no price , and therefore the beneficiary does not pay for it (does not give money in exchange). In any case, it is important to note that there is no service or good that is socially free.

All services and products have a production cost and carry an externality (the costs and benefits of their production and / or consumption that are not reflected in the price). For the beneficiary not to pay for what is granted free, someone has to assume the costs beforehand .
If the good in question does not really cost anyone, it is not an economic good . In that case, it would be necessary to speak of a free good , which lacks price and owner. The wind , for example, is a free good, not an economic good that is given gratuitously.
Beyond all that has been said, in colloquial language gratuity is usually linked to non-payment by the consumer or user . Between 2009 and 2017, to cite one case, the Argentine State developed a program known as Fútbol Para Todos . Many argued that this measure guaranteed free broadcasts of First Division football matches , since viewers did not have to pay to access such content . However, others warned that the State assumed the costs (paying fees, financing technical operations, etc.) and that citizens, in turn, financed the State through the payment of taxes.. That is why they affirmed that such gratuity did not exist.
In the field of software development , for example, the industry has undergone a significant change from its beginnings until the beginning of the second millennium with respect to the price of its products, starting from figures accessible to a few until reaching free as the key to the mass distribution of a basic package that can then be completed by means of small payments for specific functions or add-ons.
We are in an era in which free is practically a condition for the consumption of programs and video games by a large portion of consumers. This phenomenon occurs especially in the mobile market: a large percentage of mobile phone users claim that the downloadable products through the virtual store are free or that they cost very little money. On the other hand, in the field of computing and traditional video games, both for computer and console, prices are very high and this does not prevent these markets from proliferating.

Perhaps the problem begins when people associate the concepts of gratuity and justice, because they seem to overlook the economic and energy investment involved in creating their favorite products . The piracy is one of the most unfortunate events, and affects both the film industry as music, literature and video games. Far from being a crime committed in the shadows, millions of people practice it and defend it with pride, claiming that they do not consider it fair to have to pay to see a movie. This nonsense is sustained in part because certain companies fear to charge for their products and services, or to offer them at considerably low prices.

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