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Do More Expensive Wines Taste Better? Evidence From A Large Sample Of Blind Tastings

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Author Info

  • Goldstein, Robin
  • Almenberg, Johan
  • Dreber, Anna
  • Emerson, John W.
  • Herschkowitsch, Alexis
  • Katz, Jacob

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.

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Bibliographic Info

Paper provided by American Association of Wine Economists in its series Working Papers with number 37328.

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Date of creation: Apr 2008
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Handle: RePEc:ags:aawewp:37328

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Web page: http://www.wine-economics.org
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Keywords: wine quality; wire tasting; wine prices; Demand and Price Analysis;

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  1. Landon, Stuart & Smith, Constance, 1997. "The Use of Quality and Reputation Indicators by Consumers: The Case of Bordeaux Wine," MPRA Paper 9283, University Library of Munich, Germany.
  2. Edward Oczkowski, 1994. "A Hedonic Price Function For Australian Premium Table Wine," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 38(1), pages 93-110, 04.
  3. G¸nter Schamel & Kym Anderson, 2003. "Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand," The Economic Record, The Economic Society of Australia, vol. 79(246), pages 357-369, 09.
  4. Hadj Ali H. & Lecocq S. & Visser M., 2007. "The impact of gurus: Parker grades and en primeur wine prices¤," Working Papers ERMES 0718, ERMES, University Paris 2.
  5. Gerard J. Tellis & Birger Wernerfelt, 1987. "Competitive Price and Quality Under Asymmetric Information," Marketing Science, INFORMS, vol. 6(3), pages 240-253.
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Cited by:
  1. Almenberg, Johan & Dreber, Anna, 2009. "When Does the Price Affect the Taste? Results from a Wine Experiment," Working Paper Series in Economics and Finance 717, Stockholm School of Economics, revised 20 Apr 2009.
  2. Maya Bar-Hillel & Alon Maharshak & Avital Moshinsky & Ruth Nofech, 2012. "A rose by any other name: A social-cognitive perspective on poets and poetry," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 7(2), pages 149-164, March.
  3. Robin Cross & Andrew J. Plantinga & Robert N. Stavins, 2011. "The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices," Working Papers 2011.12, Fondazione Eni Enrico Mattei.
  4. Friberg, Richard & Paterson, Robert W & Richardson, Andrew D, 2010. "Why is there a home bias? A case study of Wine," CEPR Discussion Papers 7885, C.E.P.R. Discussion Papers.
  5. Zander, Katrin & Janssen, Meike, 2012. "Präferenzen Deutscher Öko-Konsumenten Für Wein," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137175, German Association of Agricultural Economists (GEWISOLA).
  6. Robin Cross & Andrew J. Plantinga & Robert N. Stavins, 2011. "What Is the Value of Terroir?," American Economic Review, American Economic Association, vol. 101(3), pages 152-56, May.
  7. Maya Bar-Hillel & Alon Maharshak & Avital Moshinsky & Ruth Nofech, 2010. "Does a Rose by any other Name Smell as Sweet? A Cognitive Perspective on Poets and Poetry," Discussion Paper Series dp549, The Center for the Study of Rationality, Hebrew University, Jerusalem.

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