The tangibility effect of paper money and coins in an investment experiment

Junyi Shen, Hiromasa Takahashi

Abstract


In this study, we conducted a simple self-control investment experiment to investigate the tangibility effect of paper money and coin. We found that, compared to the non-cash condition, physically holding either paper money or coin made subjects significantly less likely to participate in the investment experiment and those who did participate invested significantly less. In addition, an aversion towards coins in small investments and a gender difference in investment decision were found.


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References


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ISSN: 2254-4380