Is the second-cheapest wine a rip-off?

de Meza, David and Pathania, Vikram (2021) Is the second-cheapest wine a rip-off? Economics Letters, 205. a109965 1-3. ISSN 0165-1765

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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.

Item Type: Article
Schools and Departments: University of Sussex Business School > Economics
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 13 Jul 2021 06:47
Last Modified: 13 Jul 2021 13:00

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