Wine Price Markup in California Restaurants
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The study quantifies the relationship between retail wine price and restaurant mark-up. Ordinary Least Squares regressions were run to estimate how restaurant mark-up responded to retail price. Separate regressions were run for white wine, red wine, and both red and white combined. Both slope and intercept coefficients for each of these regressions were highly significant and indicated the expected inverse relationship between retail price and mark-up.