Labeled the "denomination effect," study 1 shows in three field studies that the likelihood of spending is lower when an equivalent sum of money is represented by a single large denomination (e.g., one $20 bill) relative to many smaller denominations (e.g., 20 $1 bills). In two of the three...

This article examines systematic differences in people's spending behavior when using foreign currencies. Rather than overspend or underspend in general, we show that individuals' valuation of a product in an unfamiliar foreign currency is biased toward its nominal value--its face value--with...

Many consumer price promotions (including new product launches) offer a product for free or for a low, discounted price along with a required purchase. This research demonstrates that consumers’ willingness to pay for the product after the promotion is retracted is higher when it was offered...