My five pounds are not as good as yours, so I will spend them
AbstractAn experimental approach is used to examine how money denomination and the choice between or availability of coins and banknotes may influence consumers’ purchasing behaviour. Evidence shows that for small amounts of money, consumers may prefer a smaller monetary value in banknotes rather than a higher value in coins. Findings also suggest that people carrying coins are more likely to make a purchase of small value than people not carrying coins. Copyright Economic Science Association 2013
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Experimental Economics.
Volume (Year): 16 (2013)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102888
Field experiment; Currency denomination; Banknotes; Coins; C93;
Find related papers by JEL classification:
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- van Hove, Leo & Heyndels, Bruno, 1996. "On the optimal spacing of currency denominations," European Journal of Operational Research, Elsevier, vol. 90(3), pages 547-552, May.
- Telser, L. G., 1995. "Optimal denominations for coins and currency," Economics Letters, Elsevier, vol. 49(4), pages 425-427, October.
- Wynne, Mark A., 1997.
"More on optimal denominations for coins and currency,"
Elsevier, vol. 55(2), pages 221-225, August.
- Mark A. Wynne, 1997. "More on optimal denominations for coins and currency," Working Papers 9702, Federal Reserve Bank of Dallas.
- Manjong Lee & Neil Wallace & Tao Zhu, 2005. "Modeling Denomination Structures," Econometrica, Econometric Society, vol. 73(3), pages 949-960, 05.
- Kooreman, Peter & Faber, Riemer & Hofmans, Heleen, 2004.
"Charity Donations and the Euro Introduction: Some Quasi-Experimental Evidence on Money Illusion,"
IZA Discussion Papers
1318, Institute for the Study of Labor (IZA).
- Kooreman, Peter & Faber, Riemer P & Hofmans, Heleen M J, 2004. "Charity Donations and the Euro Introduction: Some Quasi-Experimental Evidence on Money Illusion," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(6), pages 1121-24, December.
- Furnham, Adrian, 1983. "Inflation and the estimated sizes of notes," Journal of Economic Psychology, Elsevier, vol. 4(4), pages 349-352, December.
- Van Hove, Leo, 2001. "Optimal Denominations for Coins and Bank Notes: In Defense of the Principle of Least Effort," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(4), pages 1015-21, November.
- Priya Raghubir & Joydeep Srivastava, 2009. "The Denomination Effect," Journal of Consumer Research, University of Chicago Press, vol. 36(4), pages 701-713, December.
- Kohli, Ulrich, 1988. "A note on banknote characteristics and the demand for currency by denomination," Journal of Banking & Finance, Elsevier, vol. 12(3), pages 389-399, September.
- Manoj Thomas & Kalpesh Kaushik Desai & Satheeshkumar Seenivasan, 2011. "How Credit Card Payments Increase Unhealthy Food Purchases: Visceral Regulation of Vices," Journal of Consumer Research, University of Chicago Press, vol. 38(1), pages 126 - 139.
- Cannon, Edmund & Cipriani, Giam Pietro, 2006.
"Euro-Illusion: A Natural Experiment,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 38(5), pages 1391-1403, August.
- Himanshu Mishra & Arul Mishra & Dhananjay Nayakankuppam, 2006. "Money: A Bias for the Whole," Journal of Consumer Research, University of Chicago Press, vol. 32(4), pages 541-549, 03.
- Bruce, Vicki & Gilmore, David & Mason, Lynn & Mayhew, Pamela, 1983. "Factors affecting the perceived value of coins," Journal of Economic Psychology, Elsevier, vol. 4(4), pages 335-347, December.
- Runnemark, Emma & Hedman, Jonas & Xiao, Xiao, 2014. "Do Consumers Pay More Using Debit Cards than Cash? An Experiment," Working Papers 2014:21, Lund University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.