Red wine as a merit good

Saturday, July 05, 2008

The red wine provided by Leith’s of London at the Business Studies conference yesterday went down very well at the end of a long week. And travelling home on the train I enjoyed reading this piece in the Economist on the health benefits of a couple of glasses of a decent red! Perhaps we should add red wine to the list of perceived merit goods! Part of the pleasure and benefit comes from anticipating the consumption of a good bottle. And behavioural economists would no doubt tell us that the private benefit is increased simply by thinking the red wine is expensive even if it isn’t! (The power of the placebo applied to wine lovers!).

The American Association of Wine Economists might have something interesting to say about this! And there is a series of articles on wine economics in the latest version of the Economics Journal.

Posted to Market Failure • Merit Goods
Tags: external benefit, wine, placebo, private benefit
No comments yet, add one! Permalink

Page 1 of 1 pages

Most Popular Topic Tags on the Economics Blog

recession, demand, economics, price, unemployment, prices, inflation, costs, investment, profit, downturn, trade, supply, debt, euro, confidence, gdp, competition, employment, capacity, production, risk, oil, china, incentives, exports, housing, expectations, pay, sterling, manufacturing, food, profits, property, tutor2u, mortgage, globalisation, banks, revision, slowdown, borrowing, usa, retailers, emissions, airlines, deflation, dollar, innovation, supermarkets, efficiency, entrepreneur, monopsony, elasticity, aqa, welfare, consumption, economist, productivity, saving, keynes, wealth, opec, depression, moodle, depreciation, jobs, competitiveness, credit crunch, cars, google, stocks, economic cycle, environmental, strategy, externalities, carbon, infrastructure, vle, subsidy, evaluation, eu, management, tim harford, losses, protectionism, inequality, spare capacity, environment, poverty, monopoly, construction, behavioural, macroeconomics, bank of england, output gap, budget deficit, steel, wages, japan, carbon trading, commodities, oligopoly, imports, currencies, bbc, stagflation, contestable, agflation, cpi, farming, newsnight, choices, skills, regulation, survey, taxes, itunes, minimum wage, lse, climate change, paul mason, population, intervention, keynes society, aviation, amazon, single market, government failure, pricing, dan ariely, cartel, pollution, interest rates, shareholder, fiscal stimulus, london, rationality, redundancies, market failure, rpi, mpc, eton college, shipping, behavioural economics, germany, robert peston, india, rsa, reputation, facebook, income elasticity, current account, stakeholders, brazil, savings, microsoft, monetary policy, crowding out, collapse, multiplier effect, nationalisation, economies of scale, suppliers, price discrimination, uk economy, development, quiz, currency, apple, surplus, labour market, tesco, free, behaviour, tragedy of the commons, opportunity cost, open source, vat, smoking, ireland, poverty trap, merger, growth, edinburgh, discrimination, coffee, ownership, global, cost benefit analysis, oecd, supply chain, shareholders, scarcity, balance of payments, petrol, barriers to entry, liquidity, iphone, trade deficit, starbucks, happiness, etonomics, scrappage, human capital, subsidies, capital, immigration, eurozone, quantitative easing, takeover, ecb, paradox of thrift, exploitation, advertising, taxation, wiki, iceland, wants, utility, cost of living, brand, blog, speculation, poland, foreign exchange, spain, indirect tax, robert frank, northern rock, ocr economics, heathrow, hbos, animal spirits, hotels, freight, federal reserve, kaletsky, information failure, price war, crude oil, gini coefficient, transport, sony, creative destruction, leverage, duopoly, migrants, us economy, fishing, waste, information, tax, government borrowing, milk, budget, eu enlargement, anchoring, obama, aggregate demand, peter day, recovery, needs, forecast, internet, discounting, real income, copper, deficit, public sector, contestability, nissan, labour force survey, companies, fairness, blogging, standard of living, aqa economics, martin wolf, renewable, labour mobility, twitter, sentiment, collusion, imf, geoff riley, fair trade, pubs, income tax, obesity, guardian, consumer welfare, res, disposable income, corus, national debt, devaluation, consumer surplus, vacancies, roger bootle, sub-prime, tariff, global economy, broadband, joint venture, youth unemployment, edmund conway, startups, vehicles, yuan, immobility, income elasticity of demand, edexcel economics, redundancy, tata, accelerator, walmart, relative poverty, coal, tickets, cash, pensions, diesel, base rate, russia, liquidity trap, contestable market, marginal cost, external shocks, movies, libor, fixed costs, entrepreneurship society, comparative advantage, allocative efficiency, european union, training, satisficing, chris coleridge, hot money, rory cellan-jones, status races, price mechanism, healthcare, deleveraging, congestion, economic efficiency, migration, veblen goods, credit, social entrepreneur, apprenticeships, hyperinflation, age structure, monopoly power, financial times, evan davis, david smith, automatic stabilisers, ucas, reserve currency, ryanair, wheat, drugs, aldi, scotland, house prices, positional goods, deindustrialisation, ebea, stimulus, yahoo, organic growth, barclays, green revolution, pay cuts, liberalisation, equity, richard thaler, accelerator effect, diseconomies of scale, royal mail, demography, logging, tax burden, bonds, savings ratio, pension, ocr, nhs, job losses, nelson thornes, cross elasticity, brics, redistribution, biofuel, footfall, british airways, paul krugman, schumpeter, slump, markets, income distribution, price capping, the economist, eastern europe, ft, contraction, enterprise, natural monopoly, health, general motors, research, o2, deforestation, enlargement, producer welfare, economic welfare, asda, supply-side, landfill, social costs, economax, energy, long tail, jim o'neill, diane coyle, profit margin, podcast, share prices, tariffs, external shock, hedge fund, students, fiscal drag, green shoots, ftse, philip allan, elasticity of supply, buy to let, market power, disincentives, ben bernanke, resources, retailing, trend growth, declan curry, nokia, hysteresis, price fixing, stephanie flanders, chris anderson, bric economies, dynamic efficiency, hamish mcrae, toyota, market structure, global business, john kay, fiscal policy, winners curse, zimbabwe, hedging, compound interest, contestable markets, repossession, sustainability, public good, law of unintended consequences, royal economic society, vertical integration, economics teacher inset, probability, sustainable growth, cambridge, nairu, costa, monetarism, lagging indicator, rentokil, supernormal profit, business cycle, fairtrade, freemium, yields, radio, central bank, oft, baltic dry index, moller centre, collaboration, nobel prize, robert shiller, michael jackson, market, gender pay gap, circular flow, music downloads, denmark,
All tags

ECONOMICS TEACHER RESOURCE NEWSLETTER

Join over 4,000 other Economics Teachers in the UK and around the world who receive the tutor2u Economics Resource Email newsletter. Get special offers, first news of latest resources, teaching ideas, conferences and workshops.

* Your Email Address:
* Preferred Format:
AS/A2 Economics Board:
GCSE Economics Board:
* Country:
Full Name:
Job / Position:
Postcode:
School / College:
Town / City:
* Enter the security code shown: