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The tangibility effect of paper money and coins in an investment experiment

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  • Junyi Shen
  • Hiromasa Takahashi

Abstract

In this study, we conducted a simple self-control investment experiment to investigate the tangibility effect of paper money and coin. We found that, compared to the non-cash condition, physically holding either paper money or coin made subjects significantly less likely to participate in the investment experiment and those who did participate invested significantly less. In addition, an aversion towards coins in small investments and a gender difference in investment decision were found.

Suggested Citation

  • Junyi Shen & Hiromasa Takahashi, 2017. "The tangibility effect of paper money and coins in an investment experiment," Economics and Business Letters, Oviedo University Press, vol. 6(1), pages 1-5.
    • Handle: RePEc:ove:journl:aid:11222
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    File URL: https://reunido.uniovi.es/index.php/EBL/article/view/11222
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    Cited by:

    1. Spantig, Lisa, 2021. "Cash in hand and savings decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 1206-1220.
    2. Jessica B. Hoel & Prachi Jain & Bridget Galaty, 2022. "JUST VENMO ME: Does form of payment affect risk taking and intertemporal choice?," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 8(1), pages 16-33, December.

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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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