A Behavioral Economic Analysis of the Demand for Money in Humans

• Main Author: Reyes, Jorge R.
• Other Authors: Hyten, Cloyd
• Format: Others
• Language: English
• Published: University of North Texas 2000
• Subjects: Incentive (Psychology); behavioral economics; unit price; unit price sequence
• Online Access: https://digital.library.unt.edu/ark:/67531/metadc2704/

This study investigated the effects of unit price structure, unit price descriptions, and unit price sequence on the demand for money in humans. Six groups of 3 participants solved multiplication problems in exchange for money under various unit prices. Consumption of money decreased as the unit price increased across all conditions. However, the data also showed that: (a) fixed price structures produced slightly more elastic demand than did variable price structures, (b) price descriptions produced more elastic demand under variable price structures but had little or no effect under fixed price structures, and (c) the alternate sequence used with fixed price structures produced slightly more elastic demand.