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Pricing Effect: Why A Higher Price Tag Makes Wine Taste Better

Sara Silverstein,Jacqui Frank,Kara ChinDec 15, 2018, 01:33 IST

"Why Are We All So Stupid?" explores the cognitive biases that lead us to make irrational decisions. This episode focuses on the pricing effect, which refers to how people use price as a signal for value or quality. Turns out, a higher price tag actually makes wine taste better.