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Is the second-cheapest wine a rip-off?

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posted on 2023-06-10, 00:20 authored by David de Meza, Vikram Pathania
The second-cheapest bottle on a restaurant wine list is widely thought to be priced to exploit naïve diners embarrassed to choose the cheapest option. This paper investigates whether this behavioral theory holds empirically. We find that the mark-up on the second-cheapest wine is significantly below that on the four next most expensive wines. It is therefore an urban myth that the second-cheapest wine is an especially bad buy.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Economics Letters

ISSN

0165-1765

Publisher

Elsevier

Volume

205

Page range

1-3

Article number

a109965

Department affiliated with

  • Economics Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2021-07-13

First Open Access (FOA) Date

2022-12-19

First Compliant Deposit (FCD) Date

2021-07-12

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