Any luxury product can be reduced to absurdity this way, but it's not very useful in understanding the culture that produces and values them.
Hell, their computers probably cost twice what most people would be willing to pay, even though 90% of the time, they're doing little more than surfing the web and checking emails. But since it's something they're interested in, luxury is justified.
[0] https://en.wikipedia.org/wiki/Judgment_of_Paris_(wine)
[1] https://www.cambridge.org/core/journals/journal-of-wine-econ...
And the study you link to just seems to show that judges don't rank wines in competition very consistently. I don't think that table wines are often entered into these sorts of competitions. I'm fairly confident that someone with a good palette could distinguish between a high-end Bordeaux and Two-Buck Chuck.
- Glass bottle
- Bottling & Labelling
- Transport
- Cork/closure
- Taxes (29% here in Aus)
- Retail Markup - 25-50%
- Promotions, payment processing, business overhead, etc.
An eight dollar bottle of wine does not leave a lot of money for grape growing, harvest, wine making, aging etc, all the good stuff that makes wine tasty. Probably under one dollar.
Some grape varieties cost a lot more than others, e.g. Pinot Noir is expensive to grow and harvest because it has thin skins and so is easily damaged. However, any recent vintage bottle that retails for more than $100 is about meeting a market price point, not production costs.
None of those are "what it tastes like".
My wife without fail in blind tasting can tell you which one is which from an age perspective.
Telling the difference between a $10 wine and a $50 wine is not that hard. Getting above $50 it becomes more about how it ages and the complexity of the taste from age. In general a $10 wine will not age well as it is made to drink as soon as it is bottled. If you are paying more it is because the wine will age well.
I used to live in Singapore, which is full of rich people who collect wine and wine shops that cater to them, completely with regulated-humidity cellars etc. Problem is, Singapore is in the tropics, meaning wine often sits around baking in containers for weeks or months on its way to the shop...
1: https://www.theguardian.com/lifeandstyle/2013/jun/23/wine-ta...
It's sort of like saying that because you can install Windows on a Mac, there's no difference between an Inspiron and a MacBook Pro.
The wine's colour is part of the experience of drinking wine and affects the perceived flavour. They probably wouldn't have been fooled so easily if they were blindfolded.
Knowing a wine's price also affect its perceived flavour: https://www.gsb.stanford.edu/insights/baba-shiv-how-wines-pr...