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Wine Economics: They Always Buy the Ten Cent Wine
- time_management 18y agoIt's doubtful that Giffen goods exist at all, but wine is a beautiful example of a Veblen good; demand actually strengthens rather than recedes as the price increases.
- helveticaman 18y agoI wouldn't go as far as saying the demand function has a negative slope during most of its domain, but it may have small segments with a negative slope. But I totally agree with you, the evidence here shows that the wine market is ridiculous.
- vitaminj 18y agoA bit off-topic, but there was a study recently claiming Giffen behaviour in China concerning rice staples. The classic textbook case of the Irish potato famine was always difficult (if not impossible) to prove, but this is apparently some evidence of the existence of Giffen goods. Link: http://ideas.repec.org/p/nbr/nberwo/13243.html http://ideas.repec.org/p/nbr/nberwo/13243.html
- kleevr 18y agoI can't quite place a trace, but some thing you said resounded a bit poetic.
- goodkarma 18y agoI've had great luck with < $10 bottles of wine - including the infamous $2.99 "Three Buck Chuck" Charles Shaw wine from Trader Joe's. :)
- maneesh 18y agotwo buck chuck in california. The Shiraz won an international wine tasting contest recently. http://www.npr.org/templates/story/story.php?storyId=1963794 http://www.npr.org/templates/story/story.php?storyId=1963794
- nazgulnarsil 18y agohow many more "white people are stupid" scientific studies will we be subjected to?
- ibsulon 18y agoI think the whole Cristal phenomenon generalizes this to most Americans in general.
- augustus 18y agoI am a wine lover especially the red wine. I try to go to the wine store with a wine list but what does one do when none of the items are on the list. This is where one is in trouble. I have sometimes bought expensive wine thinking it might be good but I have been disappointed one too many times. Price is a factor in determining quality only because there are too many choices. Nowadays I don't experiment that much I stick to about 2-3 of my perennial favorites.
- pwk 18y ago"I try to go to the wine store with a wine list but what does one do when none of the items are on the list." A useful trick a friend taught me for buying non-US wines in the US is to pay attention to the importer. For example, when buying a Spanish wine, looking for Jorge Ordonez on the back label is often a big win.
- augustus 18y agoI like to stick to US wines. Why pay foreigners when American wines are just as good.
- pwk 18y ago"Why pay foreigners when American wines are just as good." A few reasons: 1. If I'm shopping for wine, and I don't see any producers I'm familiar with, I have a good tool for picking likely winners for imported wines: looking at the importer. I don't have a similar trick for domestic wines. Hints welcome! 2. Wines from different parts of the world can have pretty distinct characteristics, and I find it fun to try different things. 3. I've generally (though not always) had better luck finding cheap-and-good foreign wines than American wines. 4. I think there can be very good reasons to buy locally, but I also think a stronger global economy will have great benefits and I have no problem contributing to it.
- holygoat 18y agoOn the East Coast, it's often cheaper and more environmentally friendly to buy imported French and Spanish wines rather than trucking them from CA. (I forget the study, my apologies.) On the other hand, if you're just being patriotic, go right ahead.
- felixc 18y agoI am becoming increasingly convinced that about 90% of human behavior can be understood by a reading of "The Emperor's New Clothes." That text should be mandatory reading in schools, both for young children and adolescents, and followed up with critical discussion.
- steveplace 18y agoThere's an American Association of Wine Economists?!? ...I need to go and get a second degree.