Economics and the Honor System

There is a farm in Nantucket with hundreds of chickens, cucumbers, squash, and other produce. When I needed eggs, I could ask the farmer to walk among the chickens (who were nearby) and collect a dozen. At other times, the egg boxes were in a refrigerator from which we helped ourselves. This is the farm: At the farm, a sign on the refrigerator said EGGS $8 A DOZEN. We paid by placing our money in an unlocked cashbox, Sometimes the box was overflowing with bills. And that started me wondering. How honest are people…and why? ….[READ]

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