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Prof. Priya Raghubir's research finds people spend more when carrying cash in smaller denominations

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Excerpt from TIME -- "Raghubir and Srivastava’s results—what they’ve described in previous research as the 'denomination effect'—are consistent with an idea we’ve discussed several times: mental accounting. Small bills tend to get assigned to something like a mental petty cash account, and so we’re willing to spend them on petty things."

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