Is the second-cheapest wine a rip-off?

C-Tier
Journal: Economics Letters
Year: 2021
Volume: 205
Issue: C

Authors (2)

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:ecolet:v:205:y:2021:i:c:s0165176521002421
Journal Field
General
Author Count
2
Added to Database
2026-01-25