Is the second-cheapest wine a rip-off?

David de Meza and Vikram S. Pathania

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: 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.

JEL-codes: J1 (search for similar items in EconPapers)
Pages: 3 pages
Date: 2021-08-01
New Economics Papers: this item is included in nep-mfd
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Published in Economics Letters, 1, August, 2021, 205. ISSN: 0165-1765

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http://eprints.lse.ac.uk/110874/ Open access version. (application/pdf)

Related works:
Journal Article: Is the second-cheapest wine a rip-off? (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:110874

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