Empirical evidence of lumping and splitting: Expert ratings’ effect on wine prices
Categorization is essential to everyday cognition, aiding in the organization and comprehension of information and salient stimuli. In many cases, we partake in the process of “lumping” and “splitting,” where similar items are lumped together, while dissimilar items are split apart in an exaggerated...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Firenze University Press
2019-12-01
|
| Series: | Wine Economics and Policy |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2212977418300656 |
| _version_ | 1811197718584885248 |
|---|---|
| author | Omer Gokcekus Samin Gokcekus |
| author_facet | Omer Gokcekus Samin Gokcekus |
| author_sort | Omer Gokcekus |
| collection | DOAJ |
| description | Categorization is essential to everyday cognition, aiding in the organization and comprehension of information and salient stimuli. In many cases, we partake in the process of “lumping” and “splitting,” where similar items are lumped together, while dissimilar items are split apart in an exaggerated manner. To test whether or not lumping and splitting plays a role in how expert ratings affect prices, we examined pinot noir wines from the Willamette Valley AVA with the Wine Spectator's ratings (1984–2008). Regression analyses revealed a sharp distinction in the relationship between price and bottle quality between wines rated below 90, and wines with 90 + ratings. Wines with ratings below 90 were lumped together in to a “single mental cluster.” Wines with 90 + ratings were similarly lumped together. Not only is getting into a higher mental cluster statistically and economically significant, but there is also a “mental quantum leap” from a rating of 89–90. Moreover, the impact of expert scores on prices was magnified by an additional premium, attributable to two status indicators—sub-AVA and single vineyard—in higher clusters. Keywords: Lumping, Splitting, Categorization, Wine, Expert ratings, Status, Reputation |
| first_indexed | 2024-04-12T01:19:02Z |
| format | Article |
| id | doaj.art-bbde0e46ef7a45c18b79fb96bcea50fd |
| institution | Directory Open Access Journal |
| issn | 2212-9774 |
| language | English |
| last_indexed | 2024-04-12T01:19:02Z |
| publishDate | 2019-12-01 |
| publisher | Firenze University Press |
| record_format | Article |
| series | Wine Economics and Policy |
| spelling | doaj.art-bbde0e46ef7a45c18b79fb96bcea50fd2022-12-22T03:53:51ZengFirenze University PressWine Economics and Policy2212-97742019-12-0182171179Empirical evidence of lumping and splitting: Expert ratings’ effect on wine pricesOmer Gokcekus0Samin Gokcekus1School of Diplomacy and International Relations, Seton Hall University, 400 South Orange Avenue, South Orange, NJ, 07079, USA; Corresponding author.Edward Grey Institute of Field Ornithology, Department of Zoology, University of Oxford, Oxford OX1 3PS, UKCategorization is essential to everyday cognition, aiding in the organization and comprehension of information and salient stimuli. In many cases, we partake in the process of “lumping” and “splitting,” where similar items are lumped together, while dissimilar items are split apart in an exaggerated manner. To test whether or not lumping and splitting plays a role in how expert ratings affect prices, we examined pinot noir wines from the Willamette Valley AVA with the Wine Spectator's ratings (1984–2008). Regression analyses revealed a sharp distinction in the relationship between price and bottle quality between wines rated below 90, and wines with 90 + ratings. Wines with ratings below 90 were lumped together in to a “single mental cluster.” Wines with 90 + ratings were similarly lumped together. Not only is getting into a higher mental cluster statistically and economically significant, but there is also a “mental quantum leap” from a rating of 89–90. Moreover, the impact of expert scores on prices was magnified by an additional premium, attributable to two status indicators—sub-AVA and single vineyard—in higher clusters. Keywords: Lumping, Splitting, Categorization, Wine, Expert ratings, Status, Reputationhttp://www.sciencedirect.com/science/article/pii/S2212977418300656 |
| spellingShingle | Omer Gokcekus Samin Gokcekus Empirical evidence of lumping and splitting: Expert ratings’ effect on wine prices Wine Economics and Policy |
| title | Empirical evidence of lumping and splitting: Expert ratings’ effect on wine prices |
| title_full | Empirical evidence of lumping and splitting: Expert ratings’ effect on wine prices |
| title_fullStr | Empirical evidence of lumping and splitting: Expert ratings’ effect on wine prices |
| title_full_unstemmed | Empirical evidence of lumping and splitting: Expert ratings’ effect on wine prices |
| title_short | Empirical evidence of lumping and splitting: Expert ratings’ effect on wine prices |
| title_sort | empirical evidence of lumping and splitting expert ratings effect on wine prices |
| url | http://www.sciencedirect.com/science/article/pii/S2212977418300656 |
| work_keys_str_mv | AT omergokcekus empiricalevidenceoflumpingandsplittingexpertratingseffectonwineprices AT samingokcekus empiricalevidenceoflumpingandsplittingexpertratingseffectonwineprices |