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Do good things come in small packages? Willingness to pay for pomegranate wine and bottle size effects

Author

Listed:
  • Andreas C. Drichoutis

    (Agricultural University of Athens)

  • Stathis Klonaris

    (Agricultural University of Athens)

  • Georgia Papoutsi

    (Agricultural University of Athens)

Abstract

"We evaluate the claim that bottle size formats signal quality changes, using a controlled laboratory experiment where we simultaneously auctioned two di erent sweet wines: a pomegranate wine and a grape wine. We varied on a between subjects basis the size of the bottle, from 500ml to 750ml, but kept the wine content of the bottle constant across bottle size formats. We also explored in a within subjects design the effect of expectations for the wines, blind tasting and information on willingness to pay. For the grape wine we nd evidence consistent with diminishing marginal utility while for the pomegranate wine we nd a premium for the smaller bottle size which is consistent with changes in perceived scarcity of the wine. We also find that information is adequate in o setting the negative effect from the tasting treatment."

Suggested Citation

  • Andreas C. Drichoutis & Stathis Klonaris & Georgia Papoutsi, 2016. "Do good things come in small packages? Willingness to pay for pomegranate wine and bottle size effects," Working Papers 2016-2, Agricultural University of Athens, Department Of Agricultural Economics.
    • Handle: RePEc:aua:wpaper:2016-2
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    References listed on IDEAS

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    More about this item

    Keywords

    second price auction; laboratory experiment; wine; sensory analysis; willingness to pay; bottle size effect.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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