804 Tastes: Evidence on Preferences, Randomness, and Value from Double-Blind Wine Tastings

Results for a total of 804 double-blind tastes by experienced tasters during nine tasting events are reported. <italic>T</italic>-test results reject the hypothesis that flight-position bias affects results. The distribution of ranks for a wine is a mixture distribution, and tests concerning the variance of that mixture distribution do not isolate the variance due to the randomness mixture component alone. <italic>T</italic>-statistics for the mean ranks of high- and low-ranking wines are over several standard deviations from a random expectation. <italic>T</italic>-tests show that the statistical significance of the difference between wine ranks is positively related to the difference in their mean ranks. At a 95% level of significance, the difference in ranks between the first- and second-place wines appears to be significant in 33% of tastings. At 95%, the difference in ranks between the first- and last-place wines appears to be significant in 100% of tastings. Monte Carlo simulation shows that much of those differences could be illusory and due to ranking procedures that lead to Type I errors. While the mean correlation coefficient between price per bottle and mean preference is a weakly positive 0.23, this may not indicate an inefficient market. (JEL Classifications: A10, C00, C12, D12)