After our podcast segment about the psychology of spending dollars and coins, Mary Hoddinott writes:

I sometimes play poker at one of the mountain town casinos in Colorado. The gambling is limited stakes, with a $5 maximum bet. Although I could have sworn I didn't have a "tell" -- I did, a huge one. When I had a hand I felt good about, I would toss out a red $5 chip. If I didn't feel so good about my hand, I would put out five white $1 chips in order to save my red chips.
I was appalled when I realized what I was doing. I stopped, of course, and now I watch for the same behavior in others. I would bet the best poker players recognize this behavior intuitively. I didn't have a name for it until I heard about the Denomination Effect on your podcast.

categories: Letters

10:04 - April 27, 2009

What is this?

Share