Over on the Freakonomics Blog author Robin Goldstein has written a short note about wine pricing.
He argues for supply-side pricing (cost based) instead of demand/market based pricing.
I suppose I would prefer supply-side pricing too, but I think Mr. Goldstein has ignored a basic tenet of supply and demand. A winery is going to raise prices if it routinely sells all of its wine quickly. It would only be rational, which as an aside sometimes makes me wonder about the sanity of one of my favorite wine makers, Mike Officer of Carlisle but that's another post.
I get that wine is not a commodity and the average consumer has trouble comparing the quality of one label to another, fragmenting the market, but the market for wine, such as it is, has been around for some time, and that has to say something about its relative efficiency, particularly in the age of internet, now that price comparisons are much easier.
Am I missing the point of his post?