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My five pounds are not as good as yours, so I will spend them

Published online by Cambridge University Press:  14 March 2025

Sotiris Vandoros
Sotiris Vandoros*
Affiliation:
London School of Economics and Political Science, Houghton Street, London WC2A 2AE, UK
*
e-mail: [email protected]
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Abstract

An 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.

Keywords

Field experimentCurrency denominationBanknotesCoins

JEL classification

C93: Field Experiments
Type
Original Paper
Information
Experimental Economics , Volume 16 , Issue 4 , December 2013 , pp. 546 - 559
Copyright
Copyright © 2013 Economic Science Association

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Footnotes

Electronic Supplementary Material The online version of this article (doi:https://doi.org/10.1007/s10683-013-9351-2) contains supplementary material, which is available to authorized users.

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