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Showing 187 biases.

Not Enough Meaning

We simplify probabilities and numbers to make them easier to think about

Denomination effect

Description

The tendency to spend more money when it is denominated in small amounts (e.g., coins) rather than large amounts (e.g., bills).

Example 1:

Consumers might be more willing to make several small purchases with loose change or small bills than to break a large bill for a single, similar-valued purchase. Businesses might leverage this with pricing strategies.

Example 2:

Customers may be more willing to make multiple small purchases or add small-ticket items to their cart than to make a single large purchase of the same total value. This can influence pricing and promotion strategies.