Mastrobuoni, Giovanni; Peracchi, Franco; Tetenov, Aleksey - Istituto Einaudi per l'Economia e la Finanza (EIEF) - 2012
We separate the budgetary and non-budgetary effects of price on demand using choice data from wine tasting experiments in which consumers tasted wines of different quality accompanied by fictitious price information. The non-budgetary effect is present and nonlinear: it is strongly positive...