Tobias Greitemeyer, Eva Traut-Mattausch, Eva Jonas, Ruth Klendauer, Dieter Frey, and Stefan Schulz-Hardt (2007)

Psychologische Mechanismen bei Preiswahrnehmungen im Rahmen der Euro-Einführung

Wirtschaftspsychologie, 9(3):59-64.

In Germany, the introduction of the Euro has been one of the most important economic changes in the last decades. This paper reviews how the introduction of the Euro has affected price trend perceptions as well as comparisons of DM and Euro prices. Prices in Euro, relative to DM, are typically overestimated, which is due to people's failure to revise their initial (faulty) expectations of price increases. In addition, due to anchoring effects, the comparison of prices in DM and Euro results in biased judgments. For instance, while people focus on nominal numbers, they neglect the real amount of money (Euro illusion).