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Wine in Your Knapsack?

Author

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  • Conrad, Jon M.
  • Gomez, Miguel I.
  • Lamadrid, Alberto J.

Abstract

We pose three Knapsack Problems (KPs) to select the rank-maximizing subset of wines subject to budget and quantity constraints. The first problem seeks the subset of wines, from a single cultivar (zinfandel) that maximizes the sum of rank subject to a budget constraint. We modify this problem by adding an equality constraint on the number of bottles that must be chosen. The third problem seeks to maximize the sum of ranks from three different cultivars (cabernet sauvignon, pinot noir, and zinfandel) subject to a budget constraint and then a budget and minimum bottle constraints for each cultivar. The sum of rank maximization problems may have multiple solutions. We also pose two expenditure minimization problems, subject to achieving the maximum sum of ranks. We also explore how a KP might be formulated when wine is viewed as an investment.

Suggested Citation

  • Conrad, Jon M. & Gomez, Miguel I. & Lamadrid, Alberto J., 2010. "Wine in Your Knapsack?," Working Papers 126966, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:126966
    DOI: 10.22004/ag.econ.126966
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    References listed on IDEAS

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    1. Clarke, Harry R. & Reed, William J., 1989. "The tree-cutting problem in a stochastic environment : The case of age-dependent growth," Journal of Economic Dynamics and Control, Elsevier, vol. 13(4), pages 569-595, October.
    2. Masset, Philippe & Weisskopf, Jean-Philippe, 2010. "Raise Your Glass: Wine Investment And The Financial Crisis," Working Papers 90484, American Association of Wine Economists.
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    Cited by:

    1. Gergaud, Olivier & Ginsburgh, Victor & Moreno-Ternero, Juan D., 2021. "Wine Ratings: Seeking a Consensus among Tasters via Normalization, Approval, and Aggregation," Journal of Wine Economics, Cambridge University Press, vol. 16(3), pages 321-342, August.

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    More about this item

    Keywords

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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