Pricing effect: Why a higher price tag makes wine taste better

• Turns out, a higher price tag actually makes wine taste better.
• “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.

Watch other episodes of “Why Are We All So Stupid?”:

Overconfidence Bias: Asking Couples About Their Relationships

Anchoring Effect: Guessing How Many Jelly Beans Are In A Jar

Availability Bias: Discussing Who’s Most Likely To Cheat On Their Spouse

Endowment Effect: Trying To Buy People's Lottery Tickets

EDITOR'S NOTE: This video was originally published on December 14, 2018.