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My question regards how currency denominations might artificially affect prices. For example, a baseball game that determines a good pricing scheme for parking would be charging 7 dollars per person. But, due to the difficulty of exchanging change with everyone, may decide to instead charge 10 dollars for the convienence. I am wondering if there has been any research done in this area, and if anyone can point me in the right direction.

Specifically, I am looking at how cash denominations alter prices for convienence on the transaction.

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  • $\begingroup$ In most cases, price is all about demand-supplies(and also monopoly). Only during special situation : When India announce to scrap 500, 1000 rupee denomination. It cause a surge on price to trader that willing to take the denomination. $\endgroup$
    – mootmoot
    Commented Jan 4, 2017 at 11:02

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