Denomination Effect
8 min read
The denomination effect is the tendency to spend money more easily when it is in smaller units (like coins or small bills) than when it is in larger units.
Cognitive Biases / Money perception
/ Small change effect
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Explore 2 cognitive biases related to this topic.
8 min read
The denomination effect is the tendency to spend money more easily when it is in smaller units (like coins or small bills) than when it is in larger units.
Cognitive Biases / Money perception
/ Small change effect
9 min read
Post-purchase rationalization is the tendency to justify a purchase after the fact by focusing on its positives and downplaying its drawbacks.
Cognitive Biases / Consumer decisions
/ Buyer’s rationalization