With colleagues, I have the results of 4 replications, using Spearman R's on 400 vintages suggesting a very low correlation between rank order blind tasting of quality and retail price. Where are similar studies? Results suggest over 90 percent of the variation on y (taste variable) cannot be explained by price.
Dear Mr Cope,
I only know of one other study that investigates the relationship between the sensory characteristics, quality and price of wine. It was done by Lecocq, Combris and Visser in 2003, and published in the Economic Journal (107; 390-402). They found, quite in line with your results apparently, that both quality (measured by a jury's judgement) and price are independent functions of sensory/objective characteristics, and that quality does not directly influences price (or vice versa, a matter of interpretation of the correlation).
Hopefully, this answer is somewhat useful to you. Will you publish the results of your analysis?
Thank you for that reference. All three of us are simply retired academics who (via our experiencing wines) questioned the lack of rank order correlation of price to jury judgments. Yes, we wish to inform others, however, not a referred journal article, more likely a 'news' report. Time allowing the preparation, likely in a week or so. If you like I'd have you look at the draft. Is this a serious interest of yours?
I would like to have a look on the draft if you don't mind. I don't think your findings sound surprising, but I also think it depend on the wines included in the study.
Pontus.... See where you are 'thanked' in Notes in the now published results:
http://www.digitaljournal.com/money/new-results-on-wine-prices-does-quality-matter-not-really/article/364630 Like to know if you have further thoughts ... Regards from Australia
The results seems perfectly normal to me. It only confirms that quality is multidimensional, can be evaluated differently by different types of actors, is subjective, etc. The problem is not only an asymmetry of information, like in Akerlof or Stiglitz, but an intrinsic indeterminacy. I would refer you to the work of Gilles Allaire (the multidimensional definition of quality) especially in my book on geographical indications (2012). But there are also other references of Allaire related to quality. For a sociological approach, you can also refer to Lucien Karpik, "Valuing the Unique", which address exactly the question you raise. For example, Karpik analysed the ranking for Hi-Fi system from two different sources (a professional magazine and tests from a specialized shop) and found that the evaluations were very different in both cases. They were also not related to prices. Karpik also gives similar examples (recordings, etc.).
Greatly appreciate the leads you suggest. I'll be following your suggestions.. Particularly, "geographical indications,' has me intrigued. Thanks.
I've been to your book on Geographical indications.... and PT and GIP and so forth and commend you for the views set forth lucidly and, yes, helpful for my deeper appreciation of the changing approaches to the notion of quality. Thank you.
Thank you Robert, very kind of you to mention me. The Gi lead is interesting. If you compare within an appellation (for example Champagne) I think you might find more of a correlation. The really expensive brands (icon wines) will of course be different as price is a part of the positioning for those wines.
To answer Pontus, this is very doubtful that people can really rate the different "qualities" between two different brands of Champagne (or, Saint-Emilion). Anyway, different guides give different rankings, which do not really follow the price. There may be a general agreement for the very top "big names" -- Cheval Blanc for Saint-Emilion for example -- but beyond that...The question, raised by Karpik, is how to judge something that is basically unique? More straightforwardly, wine lovers are always trying to find relatively unknown chateaux (in the Bordeaux area) that they find good quality and cheap (or very cheap).
Intrinsic quality is very difficult to judge, and usually, people don't really judge the quality of the product they buy, but the sign of quality that they can decipher (from the appearance of the product, the packaging, etc.). The final judgement (especially at the time of buying) depends on the trust people may have on these signs. For wines, they rely on the AOC, the cepage, the opinion of the experts or guides, etc. But they have more difficulties to really judge and evaluate the quality of the product from blind testing. The result of Robert is completely consistent with this pattern. (you can also refer to my book chapter, in "the political economy of agro-food markets in China").
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