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that the so-called common knowledge "has never been empirically examined, a new paper suggests that it claims to refute it.
We all heard this wine list theory before: The second cheapest bottle of wine is the worst value. The logic is allegedly simple: customers do not want to look cheap, so choose instead of the fewest expensive bottle for the second height expensive; Approved allegedly the restaurants in human nature, and mark the second prudent bottle of wine the most.
It's all useful. Or does it? A few economists had a creeping suspicion that this theory does not hold a writing of a writing, "as far as we know that the claim has never been empirically examined" - so they actually conducted research. The results. Found in a recent working paper published by the American Association of WeinerГ¶konomen, just as they hypotherized: No, the second cheapest bottle of wine is not the biggest rip-off. In fact, the value tends to be the worst in the middle of a list.
David de Meza, a professor at the London school board of the economist and the co-author of the paper, explained that even if the second bottle was considered the worst, the more traction that gets the idea, less is still Useful. "If the cleaning theory is such a knowledge, one could conclude that the second prudent wine is an even less attractive choice for Diners than the cheapest, as it is not only a bad buy, but signals an etchable effort to be passionate " he explained. "And even if the guests behave as naive behavior types, it is not used that all restaurateurs to exploit them."
to examine to the theory, de Meza and its co-author Vikram Pathania, a professor at the University of Sussex Business School, drawn 470 wine meals, one of red and white, from 235 restaurants located in London, which posted Had their lists by TripAdvisor on the paragraph of July 2015. None of the menus was over three pages long and led a total of 6,335 wines or an average of about 13 bottles per menu.From there, each of the wines was executed by a price comparison website to find the best retail price selected, as most consumers are familiar with retail prices than wholesale prices and would like to submit the retail trade. Overall, Markup for Restaurant Wines with a triple triple was the selling price - an increase that was relatively consistent for red-white wines.
After you crunch the numbers, the paper completed, "The marking on the second prudent wine lies under the immediate subsequent wines. Another finding is that the absolute markings in the ranking will be increased during the percentage mark-ups peak enhancement In medium-sized wines. "In fact, the percent markup on the third bottle of wine jumped most to accommodate an over 300 percent marker on the first two bottles, which began on the third bottle on the first two bottles. And it did not really start again until the 11th bottle returned.
"The percent mark on the second cheapest wine is clearly below that on the third, fourth and fifth favorable wine and significantly below the top mark, which tends to occur to the middle wine on the menu" de Meza clearer.With all this in mind that Pathania emphasizes his own logical explanation - and it has nothing to do with the attempt not to look cheaply. "It would be reasonable to assume that the margins are lifted at the low end of the wine to promote consumption," he said. "At the high-end, low-margin customers brings to the updated customers on the more expensive wines on the list."
makes me sense. But what do I know? I also believed in the old theory. Consider me as miserable.
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