Holy cow, I wrote a book!
A story a while back about
ridiculously expensive speaker cables
James Randi's challenge to tell the difference between them and
reminded me of a conversation I had with a wine-loving friend of mine.
He went on a wine tasting tour and sampled wines of varying quality
His conclusion was that he could detect the correlation between
price and quality up until about $75/bottle.
Beyond that point, the wines all tasted roughly equally great.
Conclusion: There's no point in my friend spending more than about $75
on a bottle of wine.
Once you know the limit of your discrimination,
you can use it to avoid wasting money.
(One might argue that this is one advantage of having a coarse palate:
You can get away with cheaper wine!)
researchers have determined that people perceive the same wine as
tasting better if they are told that it is more expensive.