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The Snob Effect of Red Wine: Estimating Consumer Bias in Experimental Blind Wine Tastings

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  • Kyle Peterson

Abstract

Rising wine production in the United States has led to increased product availability in terms of price and grape varieties used to make the wines. This paper examines the potential biases that consumers may have regarding price and grape blend compositions of red wines, with a focus on the biases that consumers may have against inexpensive wines and wines that are made from university-developed hybrid grape varieties. Specifically, this paper finds that consumers rate a wine less favorably when they are told it is inexpensive, while information revealing that a wine is a hybrid grape variety has no impact on consumer rating. These impacts, however, vary across gender and purchasing behavior.

Suggested Citation

  • Kyle Peterson, 2014. "The Snob Effect of Red Wine: Estimating Consumer Bias in Experimental Blind Wine Tastings," The American Economist, Sage Publications, vol. 59(1), pages 76-89, May.
    • Handle: RePEc:sae:amerec:v:59:y:2014:i:1:p:76-89
    DOI: 10.1177/056943451405900107
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    References listed on IDEAS

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    1. Solnick, Sara J. & Hemenway, David, 2009. "Do spending comparisons affect spending and satisfaction?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(4), pages 568-573, August.
    2. Goldstein, Robin & Almenberg, Johan & Dreber, Anna & Emerson, John W. & Herschkowitsch, Alexis & Katz, Jacob, 2008. "Do More Expensive Wines Taste Better? Evidence from a Large Sample of Blind Tastings," Journal of Wine Economics, Cambridge University Press, vol. 3(1), pages 1-9, April.
    3. Cuellar, Steven S. & Huffman, Ryan, 2008. "Estimating the Demand for Wine Using Instrumental Variable Techniques," Journal of Wine Economics, Cambridge University Press, vol. 3(2), pages 172-184, January.
    4. Cuellar, Steven & Huffman, Ryan, 2008. "Estimating the Demand for Wine Using Instrumental Variable Techniques," Working Papers 44085, American Association of Wine Economists.
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    Keywords

    wine; price; experimental; hybrid; bias;
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