The Tangibility Effect of Paper Money and Coins in an Investment Experiment
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.
Tangibility effect, Paper money, Coin, Experiment
Research Institute for Economics and Business Administration,
Rokkodai-cho, Nada-ku, Kobe
School of Economics, Shanghai University, China
Faculty of International Studies, Hiroshima City University