denomination effect

noun

A cognitive bias in which people may be less likely to spend larger currency denominations than their equivalent value in smaller denominations.

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Meanings

noundenomination effect (plural denomination effects)

plural denomination effects

  1. A cognitive bias in which people may be less likely to spend larger currency denominations than their equivalent value in smaller denominations.
Cite this entry
APA

denomination effect. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/denomination%20effect

MLA

“denomination effect.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/denomination%20effect. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “denomination effect,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/denomination%20effect.

Source: denomination effect on Wiktionary, CC BY-SA 4.0.