- Location
- Bordeaux
What is perverse demand?
Quite simply, the more something is expensive, the more people want it.
What are normal demand and perverse demand? Please give examples. | Homework.Study.com
It sounds kind of sick, pretentious, or just plain stupid, but I admit to succumbing from time to time.
Let me explain.
It’s not trophy wines I’m talking about. That’s for rich people or wannabes ;-). I’m talking about walking into a store and seeing a selection of wines from a region you don’t know (for me, that would be Languedoc or Sicily, for instance) and *assuming* that the most expensive wines are probably the best. And purchasing the wine accordingly – even though I*know* that the relationship between price and quality is only loosely proportional.
I persuade myself to take the risk that the higher market price will reflect something a cut above.
I am especially prone to this when travelling in a vineyard region where none of the wines are really very expensive. So, I figure I might just as well buy the costly ones to take back with me…
Obviously, if someone at the store is there to offer advice, or I can somehow evaluate the choice of wines, I can purchase more intelligently. But this is not always possible.
Any of you get taken in by this phenomenon?
Best regards,
Alex R.
Quite simply, the more something is expensive, the more people want it.
What are normal demand and perverse demand? Please give examples. | Homework.Study.com
It sounds kind of sick, pretentious, or just plain stupid, but I admit to succumbing from time to time.
Let me explain.
It’s not trophy wines I’m talking about. That’s for rich people or wannabes ;-). I’m talking about walking into a store and seeing a selection of wines from a region you don’t know (for me, that would be Languedoc or Sicily, for instance) and *assuming* that the most expensive wines are probably the best. And purchasing the wine accordingly – even though I*know* that the relationship between price and quality is only loosely proportional.
I persuade myself to take the risk that the higher market price will reflect something a cut above.
I am especially prone to this when travelling in a vineyard region where none of the wines are really very expensive. So, I figure I might just as well buy the costly ones to take back with me…
Obviously, if someone at the store is there to offer advice, or I can somehow evaluate the choice of wines, I can purchase more intelligently. But this is not always possible.
Any of you get taken in by this phenomenon?
Best regards,
Alex R.