Chip denominations to encourage loose action...

[mothmandan]

If you only play limit (especially these low limits listed) then play with $1 chips. It makes life easier for everyone, and yes by only playing with $1 chips the pot looks big early and can help keep the action alive if there are a lot of inexperienced players in the hand.

From the dealer's prospective I find that whenever a stray $5 chip ends up in a limit game it either ends up as a card protector or gets used preflop as a large chip call. I do my best to try and drop them as the rake ASAP or have been asked to change them out in my tray if someone gets it and doesn't want it.

Tournaments and NL ring games would be a better arena to test this theory. Using larger chips when small ones are available may help choke action especially if the person using them has a big stack. It has been a while since I have done any reading but I seem to recall Phil Gordon mentioning something in the Little Green Book regarding this (physical dimensions).

Good players won't let chip color affect decisions because they are usually thinking in terms of numbers of big bets in the pot not the actual $ amount.

Dan's 2 cents