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How do we pay with euro notes? Empirical evidence from Monopoly experiments

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  • Franses, Ph.H.B.F.
  • Kippers, J.

Abstract

In contrast to abundant theoretical literature, there are almost no empirical studies on how individuals actually deal with cash. In this paper we analyze euro transactions, made during various games of Monopoly® (European edition), where in some games we deliberately left out one of the notes. We find that not having access to 100-euro or 10-euo notes is not as problematic for payment behavior as it is for not having 200-euro and 20-euro notes. We also find that the 50-euro note plays a crucial role in actual payments.

Suggested Citation

  • Franses, Ph.H.B.F. & Kippers, J., 2003. "How do we pay with euro notes? Empirical evidence from Monopoly experiments," Econometric Institute Research Papers EI 2003-32, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:1046
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    References listed on IDEAS

    as
    1. Franses, Philip Hans & Kippers, Jeanine, 2007. "An empirical analysis of euro cash payments," European Economic Review, Elsevier, vol. 51(8), pages 1985-1997, November.
    2. Kippers, J. & Franses, Ph.H.B.F., 2003. "Do we need all Euro denominations?," Econometric Institute Research Papers EI 2003-39, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    3. Jeanine Kippers & Erjen van Nierop & Richard Paap & Philip Hans Franses, 2003. "An Empirical Study of Cash Payments," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 57(4), pages 484-508, November.
    4. Cramer, J. S., 1983. "Currency by denomination," Economics Letters, Elsevier, vol. 12(3-4), pages 299-303.
    5. Boeschoten, W C & Fase, M M G, 1989. "The Way We Pay with Money," Journal of Business & Economic Statistics, American Statistical Association, vol. 7(3), pages 319-326, July.
    6. van Everdingen, Yvonne M. & van Raaij, W. Fred, 1998. "The Dutch people and the euro: A structural equations analysis relating national identity and economic expectations to attitude towards the euro," Journal of Economic Psychology, Elsevier, vol. 19(6), pages 721-740, December.
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