Managing Quality under Heterogeneous Consumer Demand and Product Quality, October 2005

Based on accepted advances in the marketing, economics, consumer behavior, and satisfaction literatures, we develop a micro-foundations model of a firm that needs to manage the quality of a product that is inherently heterogeneous in the presence of varying customer tastes or expectations for quality. Our model blends elements of the returns to quality, customer lifetime value, and service profit chain approaches to marketing. The model is then used to explain several empirical results pertaining to the marketing literature by explicitly articulating the trade-offs between customer satisfaction and costs (including opportunity costs) of quality. In this environment firms will find it optimal to allow some customers to go unsatisfied. We show that the relationship between the expected number of repeated purchases by an individual customer is endogenous to the choice of quality by the firm, indicating that the number of purchases cannot be chosen freely to estimate a customer’s lifetime value.

Impact of High Crop Prices on Environmental Quality: A Case of Iowa and the Conservation Reserve Program, 2007

Growing demand for corn due to the expansion of ethanol has increased concerns that environmentally sensitive lands retired from agricultural production into the Conservation Reserve Program (CRP) will be cropped again. Iowa produces more ethanol than any other state in the United States, and it also produces the most corn. Thus, an examination of the impacts of higher crop prices on CRP land in Iowa can give insight into what we might expect nationally in the years ahead if crop prices remain high. We construct CRP land supply curves for various corn prices and then estimate the environmental impacts of cropping CRP land through the Environmental Policy Integrated Climate (EPIC) model. EPIC provides edge-of-field estimates of soil erosion, nutrient loss, and carbon sequestration. We find that incremental impacts increase dramatically as higher corn prices bring into production more and more environmentally fragile land. Maintaining current levels of environmental quality will require substantially higher spending levels. Even allowing for the cost savings that would accrue as CRP land leaves the program, a change in targeting strategies will likely be required to ensure that the most sensitive land does not leave the program.

Decision Support Model for Assessing Archaeological Survey Needs for Bridge Replacement Projects in Iowa, 2006

The Bridges Decision Support Model is a geographic information system (GIS) that assembles existing data on archaeological sites, surveys, and their geologic contexts to assess the risk of bridge replacement projects encountering 13,000- to 150-year-old Native American sites. This project identifies critical variables for assessing prehistoric sites potential, examines the quality of available data about the variables, and applies the data to creating a decision support framework for use by the Iowa Department of Transportation (Iowa DOT) and others. An analysis of previous archaeological surveys indicates that subsurface testing to discover buried sites became increasingly common after 1980, but did not become routine until after the adoption of guidelines recommending such testing, in 1993. Even then, the average depth of testing has been relatively shallow. Alluvial deposits of sufficient age, deposited in depositional environments conducive to human habitation, are considerably thicker than archaeologists have routinely tested.

Effect of a Noise Wall on Snow Accumulation and Air Quality, 1985

A noise wall was investigated to assess its effect on snow accumulation and air quality. Wind tunnel studies were undertaken to evaluate (a) possible snow accumulations and (b) the dispersion of particulate concentrations (dust, smoke, and lead particles) and carbon monoxide. Full-scale monitoring of particulate concentrations and carbon monoxide was performed both before and after the noise wall was constructed. The wind tunnel experiments for snow accumulation were conducted on a model wall located in a flat, unobstructed area. A separated flow zone existed upwind of the wall and snow immediately began to accumulate over most of the separated zone. Having the noise wall in an aerodynamically rough area, such as in an urban area as this one was, substantially decreased the amount of snow collected, compared with in the wind tunnel studies, because of turbulence reducing the separation zone. The snow accumulation has not been significantly greater with the noise wall in place than it was before construction and has proven to be of no concern to date. Monitoring for particulate concentrations has shown that the noise wall has had a beneficial effect because the amount of material collected was reduced. With the noise wall in place, monitoring for carbon monoxide has indicated that (a) for equivalent emissions under conditions of high atmospheric stability and low wind speeds, the carbon monoxide levels would be lower; and (b) under conditions of low atmospheric stability and high wind speeds, the carbon monoxide levels would be higher than expected without the wall in place.