Honor System - Advantages

Advantages

In many places where an honor system is used, it has been found to be cost-effective. Many businesses and organizations using an honor system have determined that the cost of maintaining staff to enforce proper payment outweighs the losses caused by the percentage of the population who are willing to cheat the system. In addition, efficiency is high when an honor system is used. For example, buses/trains do not have to wait to sell or check passenger tickets when boarding and can instead leave immediately, and customs green channels allow for much faster exits than if every passenger is routinely checked.

For the remainder of the population, the honor system gives a more welcoming feeling to customers. Those who are treated with trust may be more likely to return to the location, and thereby increase the amount of business.

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