A trend in EEG measurements is to increase the number of measurement electrodes in order to improve the spatial resolution of the recorded voltage distribution at the scalp. It is assumed that this would implicate better accuracy in the EEG inverse estimates. However, this does not necessarily hold. The reason for this is that the electrodes create a well conducting shunting "layer" on the scalp which affects the voltage distribution. This may decrease the information obtained and may therefore worsen the inverse estimates. Electrodes in EEG inverse problems are commonly modeled as point electrodes. This model cannot take into account the possible shunting effect of the electrodes. In this study the measurement electrodes are modeled using the so-called complete electrode model which takes into account the actual size of the electrode, the contact impedance between the skin and the electrode and also the shunting effect of the electrodes. In this paper the effects of the electrode size and the contact impedance on the voltage distribution are studied by simulations. It is shown that, depending on the size and the contact impedance of the electrodes, increasing the number of electrodes does not necessarily improve the accuracy of the inverse estimates. We also conclude that the use of the point electrode model is quite adequate in normal EEG studies. The use of a complete electrode model is necessary if electrodes cover more than 50% of the surface area.