Getting five batches of 100 gold feels better than one batch of 500 gold, and being forced to spend three separate 100 gold fees feels worse than one 300 gold fee. And that fee is likely to make all that 500 gold not feel like it mattered. You probably know all of that just from experience, but perhaps you’d like to see it in action with a new piece from the Psychology of Video Games blog discussing how grouping results (or intentionally not doing so) produces a different valuation of rewards.
To summarize quickly, we tend to prioritize losses as more important than gains, so losing 100 gold has a bigger impact than gaining 100 gold in our brains. However, both losses and gains have a certain point where we stop noticing them, so losing 1500 gold doesn’t feel much worse than losing 1300 gold. Thus, from a psychological standpoint, it makes sense to have losses come in big chunks and rewards come in several smaller chunks, so that each individual good thing gets evaluated separately while the bad stuff gets shuffled off faster. Read through the whole piece for a more thorough overview of why it works; it’s pretty interesting.