Denomination Effect

A 2009 paper published in the Journal of Consumer Research presented findings related to our perception of currency, and more specifically how we reflexively categorize bills of varying values.

Over the course of three studies, the researchers found that folks may be more likely to perceptually shrink the intuitive worth of smaller currency denominations while inflating the weight of larger denominations.

The net impact of this is that we may perceive ten $1 bills to be less valuable than a $10 bill, even though these notes have the same consolidated worth.