Markup

There is a lesson here:

Abstract. Individuals who are unaware of the price do not derive more enjoyment from more expensive wine. In a sample of more than 6,000 blind tastings, we find that the correlation between price and overall rating is small and negative, suggesting that individuals on average enjoy more expensive wines slightly less. For individuals with wine training, however, we find indications of a positive relationship between price and enjoyment. Our results are robust to the inclusion of individual fixed effects, and are not driven by outliers: when omitting the top and bottom deciles of the price distribution, our qualitative results are strengthened, and the statistical significance is improved further. Our results indicate that both the prices of wines and wine recommendations by experts may be poor guides for non-expert wine consumers.recommendations by experts may be poor guides for non-expert wine consumers.

From: Do More Expensive Wines Taste Better? : Evidence from a Large Sample of Blind Tastings

You should pay me to buy your wine, scrap off the prices and replace them with tasty robust high price labels.

3 thoughts on “Markup

  1. Lee

    Ben,
    Reminds me of father’s description of Peter Coogan buying a fancy wine and an ordinary one and decanting them into each other’s bottles. Then, when serving guests, he’d demonstratively give them the ‘fancy’ wine while explaining that he just happened to like the ‘ordinary’ one so would drink it instead. Since Peter knew wines, and I knew him and father, I expect this was a true story.
    Lee

  2. Peter Coogan

    Hi,

    Could you more clearly identify which Peter Coogan you’re referring to? I know who several of us are and I’m just curious who this one is.

    Thanks,

    Pete

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