Logo

    14. Do More Expensive Wines Taste Better?

    en-usDecember 15, 2010

    Podcast Summary

    • The Value of Inexpensive Food and Simple PleasuresEnjoying cheap food and simple pleasures can be a wonderful gift, allowing you to indulge without breaking the bank or overcomplicating things. Sometimes the simplest things in life can bring the greatest joy.

      Steve Levitt has an underdeveloped palate and loves cheap food. He believes that it is a wonderful gift to enjoy inexpensive food because it allows you to eat everything you love without breaking the bank. Levitt is not a fan of wine and questions the notion that expensive wine is always better than cheap wine. He suggests that developing your palate may complicate things. Levitt's perspective on the value of inexpensive food and simple pleasures challenges the notion that enjoyment is only found in expensive and complex experiences. It is a reminder that sometimes the simplest things in life can bring the greatest joy.

    • Expensive Wines vs Cheap Wines: What Taste Better?The cost of wine does not necessarily indicate its quality. Blind taste tests reveal that cheaper bottles taste just as good as pricier ones. Question assumptions and rely on data to make informed decisions.

      According to data collected by economist Steve Levitt, expensive wines do not necessarily taste better than cheap wines. In a blind taste test, people rated a $8 bottle of wine just as highly as $100 bottles, on average. Furthermore, individuals actually rated the same wine from the same bottle but presented in a different decanter as being the most different of the two wines. This challenges the belief that the cost of wine is indicative of its quality. Levitt's experiment highlights the importance of questioning assumptions and relying on data to inform decisions, rather than personal biases or societal norms. It also shows the potential benefits of adopting an abstinence approach to expensive habits, which could save individuals thousands of dollars each year.

    • The Importance of Expertise in Wine TastingPrice does not always equal quality when it comes to wine. Utilizing the expertise of wine professionals, like sommeliers and master wine candidates, can help ensure you're getting the best quality for your palate.

      People's knowledge of wine is not always as strong as they believe, as seen in Levitt's experiment on the Society of Fellows. However, wine professionals like Brian DiMarco exist to help consumers accurately identify quality wines without overpaying. Brian's job is to taste wine fresh from the tank, and then use his expertise to find wine that people want to drink. The price of a wine does not always correlate with its taste, and expensive wines are not always better. Brian's team of sommeliers and master wine candidates are able to identify the nuances and qualities of a wine. Overall, it is important to recognize that knowledge and expertise in wine tasting is crucial in identifying quality wines that will satisfy your palate and showcase your taste.

    • The Influence of Price and Prestige on Perceived Quality in Wine TastingPrice and prestige may heavily influence how we perceive the quality of wine, but they may not necessarily be a reliable indicator of true quality. It's important to take these factors into consideration when evaluating wine.

      People tend to think that expensive things are always better than cheaper alternatives, even if they're essentially the same. Brian DiMarco conducted an experiment that proved that people perceived the more expensive bottle of wine as tasting better, even though it was the same as the cheaper one. However, Robin Goldstein's research suggests that this perception may be a result of price signals more than anything else. Goldstein also questions the validity of prestigious wine ratings and awards, as they may not necessarily indicate the true quality of a wine. Ultimately, the perception of quality is heavily influenced by factors such as price and prestige, which may not always be a reliable indicator of true quality.

    • Goldstein's Experiment Exposes Fraudulent Wine Spectator Award SchemeAwards in the wine industry may not always be based on genuine expert judgment, and subjective factors such as advertising can play a significant role in who wins.

      Goldstein's experiment in creating a fake restaurant and wine list and entering it for a Wine Spectator Award of Excellence revealed that the entire award program was essentially an advertising scheme. He discovered that the $250 fee was the functional part of the application and that it was being fraudulently misrepresented as expert judgment. The experiment tested whether a good wine list was necessary to win the award and whether the restaurant had to exist to win. The fake restaurant not only won the award, but the Wine Spectator also tried to sell advertising to promote the award in their magazine. The experiment highlights the subjectivity of experts and the influence that awards can have in the wine industry.

    • The Flaws of Trusting Wine Experts and How to Enjoy Wine Without Overcomplicating ItTrust your own taste preferences and don't be intimidated by experts or high prices when choosing wine. Enjoy the celebration of wine for what it is, without overthinking it.

      The phenomenon of trusted expert sources abusing their positions of power to make money poses a problem for consumers who rely on them as information intermediaries. The Wine Spectator scandal showed the flaws in the wine award system, leading to consumer distrust. Robin Goldstein's academic paper presenting data from 17 blind tastings proved that people preferred cheaper wines overall, debunking the idea that expensive wines always taste better. The layers of experts in the wine industry have created performance anxiety for consumers, but at its core, wine is meant to be a celebration and should not be overly complicated. Dropping the pretense and enjoying wine for what it is can bring more pleasure than blindly following expert ratings and prices.

    • The Journey of Wine and its Unexplored DimensionsWine is not just a drink but an experience that takes you on a cultural and flavorful journey. It can be enjoyed by anyone, with any budget, and can elevate food taste buds while creating memories.

      Wine is not only about the alcohol content but also about exploring new cultures and flavors. Opening a bottle of wine can take you on a journey to Spain and make you crave tapas. It can change your day from an alcoholic standpoint or enhance your food experience. Wine is not just reserved for the elite and well-versed in wine tasting, it can be enjoyed by anyone with any budget. Wine can transport you to a different space and time, creating a soulful experience. A crisp Sancerre with a typical French croque monsieur and a salad with a little vinaigrette can elevate the taste buds, and a backup bottle can ensure a sustained experience. Wine not only pairs well with food, but it can also bring people together and create memories.

    Recent Episodes from Freakonomics Radio

    589. Why Has the Opioid Crisis Lasted So Long?

    589. Why Has the Opioid Crisis Lasted So Long?

    Most epidemics flare up, do their damage, and fade away. This one has been raging for almost 30 years. To find out why, it’s time to ask some uncomfortable questions. (Part one of a two-part series.)

     

    • SOURCES:
      • David Cutler, professor of economics at Harvard University.
      • Travis Donahoe, professor of health policy and management at the University of Pittsburgh.
      • Keith Humphreys, professor of psychiatry and behavioral sciences at Stanford University.
      • Stephen Loyd, chief medical officer of Cedar Recovery and chair of the Tennessee Opioid Abatement Council.

     

     

    Freakonomics Radio
    en-usMay 23, 2024

    Extra: Car Colors & Storage Units

    Extra: Car Colors & Storage Units

    Presenting two stories from The Economics of Everyday Things: Why does it seem like every car is black, white, or gray these days? And: How self-storage took over America.

     

    • SOURCES:
      • Tom Crockett, classic car enthusiast.
      • Zachary Dickens, executive vice president and chief investment officer of Extra Space Storage.
      • Mark Gutjahr, global head of design at BASF.
      • Kara Kolodziej, self-storage unit tenant.
      • Anne Mari DeCoster, self-storage consultant.
      • Nikkie Riedel, carline planning manager at Subaru of America.

     

     

    Freakonomics Radio
    en-usMay 20, 2024

    588. Confessions of a Black Conservative

    588. Confessions of a Black Conservative

    The economist and social critic Glenn Loury has led a remarkably turbulent life, both professionally and personally. In a new memoir, he has chosen to reveal just about everything. Why?

     

    • SOURCE:
      • Glenn Loury, professor of economics at Brown University and host of The Glenn Show.

     

     

    Freakonomics Radio
    en-usMay 16, 2024

    587. Should Companies Be Owned by Their Workers?

    587. Should Companies Be Owned by Their Workers?

    The employee ownership movement is growing, and one of its biggest champions is also a private equity heavyweight. Is this meaningful change, or just window dressing?

     

    • SOURCES:
      • Marjorie Kelly, distinguished senior fellow at The Democracy Collaborative.
      • Corey Rosen, founder and senior staff member of the National Center for Employee Ownership.
      • Pete Stavros, co-head of Global Private Equity at KKR.

     

     

    586. How Does the Lost World of Vienna Still Shape Our Lives?

    586. How Does the Lost World of Vienna Still Shape Our Lives?

    From politics and economics to psychology and the arts, many of the modern ideas we take for granted emerged a century ago from a single European capital. In this episode of the Freakonomics Radio Book Club, the historian Richard Cockett explores all those ideas — and how the arrival of fascism can ruin in a few years what took generations to build.

     

     

     

    Extra: Why Is 23andMe Going Under? (Update)

    Extra: Why Is 23andMe Going Under? (Update)

    Five years ago, we published an episode about the boom in home DNA testing kits, focusing on the high-flying firm 23andMe and its C.E.O. Anne Wojcicki. Their flight has been extremely bumpy since then. This update includes an additional interview with the Wall Street Journal reporter who has been investigating the firm’s collapse.

     

     

     

    585. A Social Activist in Prime Minister’s Clothing

    585. A Social Activist in Prime Minister’s Clothing

    Justin Trudeau, facing record-low approval numbers, is doubling down on his progressive agenda. But he is so upbeat (and Canada-polite) that it’s easy to miss just how radical his vision is. Can he make it work?

     

     

     

    584. How to Pave the Road to Hell

    584. How to Pave the Road to Hell

    So you want to help people? That’s great — but beware the law of unintended consequences. Three stories from the modern workplace. 

     

    • SOURCES:
      • Joshua Angrist, professor of economics at the Massachusetts Institute of Technology.
      • Zoe Cullen, professor of business administration at Harvard Business School.
      • Marina Gertsberg, senior lecturer in finance at the University of Melbourne.

     

    Extra: The Men Who Started a Thinking Revolution (Update)

    Extra: The Men Who Started a Thinking Revolution (Update)

    The psychologist Daniel Kahneman — a Nobel laureate and the author of Thinking, Fast and Slow — recently died at age 90. Along with his collaborator Amos Tversky, he changed how we all think about decision-making. The journalist Michael Lewis told the Kahneman-Tversky story in a 2016 book called The Undoing Project. In this episode, Lewis explains why they had such a profound influence.

     

     

     

    Why Are There So Many Bad Bosses? (Update)

    Why Are There So Many Bad Bosses? (Update)

    People who are good at their jobs routinely get promoted into bigger jobs they’re bad at. We explain why firms keep producing incompetent managers — and why that’s unlikely to change.

     

    • SOURCES:
      • Nick Bloom, professor of economics at Stanford University.
      • Katie Johnson, freelance data and analytics coach.
      • Kelly Shue, professor of finance at the Yale University School of Management.
      • Steve Tadelis, professor of economics at the University of California, Berkeley Haas School of Business.