Wine. At a restaraunt. Sure, it's a textbook example - but that's because it's so common. People don't want to buy the cheapest wine - so they get something

Wine. At a restaraunt. Sure, it's a textbook example - but that's because it's so common. People don't want to buy the cheapest wine - so they get something from the middle of the list. Price can send a signal about the STATUS of the object - and this can be more powerful than any signals about the quality!