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

Andreas Drichoutis, Stathis Klonaris () and Georgia Papoutsi ()

No 2016-2, Working Papers from Agricultural University of Athens, Department Of Agricultural Economics

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."

Keywords: second price auction; laboratory experiment; wine; sensory analysis; willingness to pay; bottle size effect. (search for similar items in EconPapers)
JEL-codes: C23 C24 C91 D12 M31 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2016
New Economics Papers: this item is included in nep-cse and nep-exp
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Working Paper: Do good things come in small packages? Willingness to pay for pomegranate wine and bottle size effects (2016)
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