Study: We really do like larger bills

January 31, 2006
Dollar bill

A University of Iowa money study explores our preference for big bills over small ones -- and explains our marked reluctance to part with a larger bill.

"The denomination in which money is held influences consumer spending," write researchers Himanshu Mishra, Arul Mishra and Dhananjay Nayakankuppam. They term the propensity to hold a single bill in higher regard "a bias for the whole."

This single value also gives large bills something the authors call "processing fluency": "A single bill possesses Gestalt features of cohesion and economy that multiple bills lack," the authors contend. "It appears that money is not just regarded as a medium of exchange, but as an object of evaluation in its own right."

The study will appear in the March issue of the Journal of Consumer Research.

Copyright 2006 by United Press International

Explore further: Facing regulatory roadblocks, Uber ramps up lobbying in its home state

Related Stories

Mafia and multinationals milk Italy's green energy boom

July 26, 2015

Thousands of solar panels glint in the sun, but the prized farmland beneath lies barren. While the Italian island of Sardinia revels in a renewable energy boom, the long arm of organised crime risks sullying its clean power ...

Home efficiency upgrades fall short, don't pay, study says

June 23, 2015

Home efficiency measures such as installing new windows or replacing insulation deliver such a small fraction of their promised energy savings that they may not save any money over the long run, according to the surprising ...

Recommended for you

A cataclysmic event of a certain age

July 27, 2015

At the end of the Pleistocene period, approximately 12,800 years ago—give or take a few centuries—a cosmic impact triggered an abrupt cooling episode that earth scientists refer to as the Younger Dryas.

New blow for 'supersymmetry' physics theory

July 27, 2015

In a new blow for the futuristic "supersymmetry" theory of the universe's basic anatomy, experts reported fresh evidence Monday of subatomic activity consistent with the mainstream Standard Model of particle physics.

Dense star clusters shown to be binary black hole factories

July 29, 2015

The coalescence of two black holes—a very violent and exotic event—is one of the most sought-after observations of modern astronomy. But, as these mergers emit no light of any kind, finding such elusive events has been ...

Image: Hubble sees a dying star's final moments

July 31, 2015

A dying star's final moments are captured in this image from the NASA/ESA Hubble Space Telescope. The death throes of this star may only last mere moments on a cosmological timescale, but this star's demise is still quite ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.