Source: Working Out Loud
Published: April 2017
The Value of Wine
Circulated: September 23, 2020
Years ago, you bought a case of good 2000 Bordeaux for $50 a bottle. It now sells at wine auctions for $125 a bottle.
You decide to drink a bottle with dinner. Which of the following best captures your feeling of the bottle’s cost to you?
- $0 — I already paid for it years ago.
- $50 — the amount I paid for it.
- $50+ — the money I paid plus the interest that would have been earned on it.
- $125 — the amount I could sell it for.
- $-75 — I saved money because now I get to drink a $125 bottle, but I only paid $50.