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| CURRENT RESEARCH | |||
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Conceptually, my research deals with understanding and modeling the complex systems coupling government, corporations, and consumers in order to minimize the environmental impacts associated with engineered consumer products. Such impacts are directly related to design decisions in straightforward although complex ways. However, they are also highly dependent on how corporations and consumers react to the characteristics of products implied by particular design decisions. The technical tools I am applying to generate such models include the theory of Multi-Stage Games, Random Utility Models of choice, and Optimization with both Discrete and Continuous Variables. Below I detail specific research activities I am currently undertaking.
This flowchart conceptualizes the connections between regulatory policy, engineering technology and the cost of that technology, profit driven design, the perception of consumer preferences by the firm, and realized sales and use of engineered products on the life cycle environmental emissions associated with engineered consumer products. |
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| Design Games |
One way in which technological and economic knowledge can be integrated in a model of industrial behavior is through game theoretic concepts. Particularly, the modeler assumes that firms seek to maximize some objective (e.g., profits) by choosing product designs from some feasible set of alternatives, and that these objectives are coupled in the sense that any given firm's objective depends on the choices of all firms. I have been examining suitable numerical methods to solve Regulated Multi-Stage Design and Pricing Games, with either (or both) continuous or discrete design variables. The staged nature of these games represents the fact that design decisions must typically be fixed some time in advance (e.g., 3 years for automotive designs), while prices remain flexible, in principal, up until the point-of-sale. In the simplest versions, firms choose designs understanding the competitive pricing responses of other firms to these designs, while assuming competitors keep their designs fixed. I am applying these methods to induce a representation of three fundamental aspects of real markets - profit-driven design decisions, competition between firms, and consumer preferences for various vehicle attributes - onto technology-cost data such as that used in the National Energy Modeling System, reported by the National Academy (2002), or derived and reported by the Northeast States Center for a Clean Air Future (2004) used to inform automotive fuel economy and emissions policy. Of particular interest is seeing how the "Cost-Effectiveness" (to the consumer) of various technologies (1) changes under competitive pricing assumptions and (2) interacts with profit-driven design decisions and competition under alternative market-based regulatory policies. |
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| relevant peer-reviewed publications | |||
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S.J. Skerlos, W.R. Morrow, and J.J. Michalek. "Sustainable Design Engineering and Science: Selected Challenges and Case Studies." In Sustainability Science and Engineering, 1, M.A. Abraham ed. Elsevier 2005 |
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| relevant presentations | |||
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W.R. Morrow and S.J. Skerlos. "Linking Economics and Engineering in Policy Analysis: The Case of Automotive Greenhouse Gas (GHG) Policy." Presented (by WR Morrow) at the 2006 INFORMS Annual Meeting in Pittsburgh, PA November, 2006. |
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W.R. Morrow, S.J. Skerlos, and J. Michalek "Design-Centered Policy Analysis: Nash Equilibrium Automotive Designs" Presented at the University of Michigan's Applied Interdisciplinary Mathematics (AIM) Seminar in Ann Arbor, MI December 9th, 2005. |
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| Price Equilibria |
I have spent a significant amount of time studying price equilibria as part of the study of Multi-Stage Design and Pricing Games. My primary result in this area involves the characterization of equilibrium prices under Logit, Generalized Extreme Value, and Mixed Logit Random Utility Models of demand as solutions to certain fixed-point equations. This approach has a straightforward generalization to cases where firms face regulatory costs. For Logit, I have used this equation to provide the first generic equilibrium existence proof for multi-product firm price equilibrium under this class of Random Utility Model. This proof requires tools from differential topology, particularly the Poincare-Hopf theorem, to overcome the lack of quasi-concavity in multi-product firm profit functions. This equation also illuminates some structural properties of price equilibria, some expected and some counterintuitive. Under Mixed Logit, the fixed-point equation provides a numerical method markedly more efficient and reliable than the Newton-Raphson method. Particularly, the fixed-point iteration requires an order of magnitude less work per iteration than the Newton-Raphson method. Moreover, the Newton-Raphson method (or simple modifications) can be unreliable at finding equilibria, while the fixed-point iteration has shown to be quite robust at finding equilibria. Hopefully, the fixed-point iteration will enable numerical analysis of firms with dynamic decision-making models under complex demand specifications like Mixed Logit. |
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| relevant peer-reviewed publications | |||
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W.R. Morrow and S.J. Skerlos "A Fixed-Point Approach to the Analysis and Computation of Price Equilibrium for Multi-Product Firms Under Logit and Mixed Logit Random Utility Models of Demand." Submitted to Econometrica January, 2008 |
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Supplementary Materials for "A Fixed-Point Approach to the Analysis and Computation of Price Equilibrium for Multi-Product Firms Under Logit and Mixed Logit Random Utility Models of Demand." |
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| relevant presentations | |||
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W.R. Morrow and S.J. Skerlos. "Meta-System Game Theory and Mathematical Results: Price Equilibrium under standard RUMs" Presented (by WR Morrow) at the 2007 External Advisory Board Meeting for NSF CMMI MUSES Grant "Implications of GHG Policies on Materials Flows: A Life-Cycle Approach Integrating Engineering, Public Policy, and Economics" In Ann Arbor, MI August 2007. |
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| MUSES |
The automotive industry plays a central role in both Greenhouse Gas (GHG) emissions and materials flows in the United States. Yet, there has been little research that attempts to quantitatively address the consequences of GHG policy on key materials flows. I am part of a multi-university research project dedicated to filling this gap; this project is funded by the US NSF's Division of Civil, Mechanical, and Manufacturing Innovation Biocomplexity MUSES (Materials Use: Science, Engineering, and Society) program. In the Spring of 2007, this project was selected to represent NSF funding at the University of Michigan at the 13th Annual Exhibition and Reception for the Coalition for National Science Funding.
Professor Steven J Skerlos (front right) and I (back right) discussing
the MUSES project with NSF Director
Dr. Arden Bement (back left) and Michigan's 3rd District Representative
Vern Ehlers (front left)
at the 13th Annual Exhibition and Reception for the Coalition for National
Science Funding in Washington, D.C., March 17th, 2007.
In addition to an application of Multi-Stage Design and Pricing Games, we are developing Life Cycle Assessment methods appropriate for a context where design variables, vehicle characteristics, and fleet character change as a result of policy. In terms of Linear Life Cycle Inventories, this requires modeling how the economic and environmental components of the process technology matrices depend on design characteristics. Since design decisions also change the characteristics "demanded" by consumers, one must also model how functional unit demand changes with design variables. Since demand is typically characterized with stochastic modeling methods (e.g., Random Utility Models), uncertainty also enters the Life Cycle Assessment in a new way. |
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| relevant presentations and posters | |||
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W.R. Morrow and S.J. Skerlos. "Meta-System Game Theory and Mathematical Results: Price Equilibrium under standard RUMs" Presented at the 2007 External Advisory Board Meeting for NSF CMMI MUSES Grant "Implications of GHG Policies on Materials Flows: A Life-Cycle Approach Integrating Engineering, Public Policy, and Economics" in Ann Arbor, MI August 26th, 2007. |
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W.R. Morrow and S.J. Skerlos. "The Impacts of Automotive Greenhouse Gas (GHG) Policies on Emissions and Materials Flows: A Life-Cycle Approach Integrating Engineering, Public Policy, and Market Decisions" Posters presented at the 13th Annual Exhibition and Reception for the Coalition for National Science Funding in Washington D.C., March 17th, 2007. |
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| Automotive Database |
Under the MUSES project and as part of my dissertation research, I have been involved in the collection of Automotive datasets from a variety of sources: particularly marketing organizations, the EPA, and the NHTSA. We are currently consolidating the various datasets to facilitate the construction of new automotive demand models and a historical analysis of technology adoption under CAFE regulation, among other studies. |
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| PREVIOUS RESEARCH | |||
| Direct Metal Deposition |
(Written in 2005) Solid Freeform Fabrication (SFF) processes have recently introduced the capability to manufacture components of consumer or industrial products from the ground up. This leads to many challenging engineering design opportunities, particularly the construction of internal structures and heterogeneous materials, neither feasible with traditional manufacturing methods. My role falls with Direct Metal Deposition (DMD), a SFF process for use with atomized metal powders developed at U of M by Professor Jyotiroy Mazumder and the CLAIM group. Processes like DMD are making tremendous economic improvements for producers using injection and die casting molds. We have taken an initial assessment of the relative environmental impacts for manufacture of molds through traditional and DMD methods, hoping that SFF can introduce environmental as well as technical and economic improvements. |
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| relevant peer-reviewed publications | |||
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W.R. Morrow, H. Qi, I. Kim, J. Mazumder, and S.J. Skerlos. "Environmental aspects of laser-based and conventional tool and die manufacturing." Journal of Cleaner Production 15(10) 2007 pg 932-943 |
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| relevant presentations | |||
| relevant conference abstracts | |||
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W.R. Morrow, H. Qi, I. Kim, J. Mazumder, and S.J. Skerlos. "Laser-Based and Conventional Tool and Die Manufacturing: Comparison of Environmental Aspects" Proceedings of the Global Conference on Sustainable Product Design and Life Cycle Engineering September 29 – October 1, Berlin 2004 |
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S.J. Skerlos and W.R. Morrow. "Comparative Life Cycle Assessment of Direct Metal Deposition with Traditional Die and Mold Manufacturing Practices" Abstract presented at the 2nd International Symposium of the International Society of Industrial Ecology Ann Arbor, Michigan, June 29 - July 2, 2003 |
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| Remanufacturing of Cellular Telephones |
(Written in 2007) During my first two years of graduate school I was part of a project that investigated the environmental benfits of cellular telephone remanufacturing. In collaboration with the Technical University of Berlin and a major cellular telephone manufacturer, a Life-Cycle Assessment of new cellular telephones and remanufactured cellular telephones was undertaken. The (somewhat obvious) conclusion that remanufactured handsets are more environmentally benign than new handsets was verified under the assumption that remanufactured handsets replace new ones. However, remanufactured handsets were, at that time, primarily sold in developing markets as a low-cost market expansion vehicle, in conflict with this assumption. Today there is some availability of remanufactured handsets in mature markets, but it is still largely marginal. Nonetheless, there is evidence that the availability of information technology, including cellular telephones, carries social benefits to developing markets. These benefits include: increased market empowerment (e.g., knowledge of agricultural prices), increased accessibility of healthcare, entreprenurial activity, and empowerment of women. Environmental economics stipulates that such benefits, in so far as they accelerate development, eventually extend to awareness of environmental impact and environmental efficiency improvement. We did not quantify these aspects of this complex isue, but rather presented them to an otherwise technical audience as an example of the interactions between engineering, technology, and society. |
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| relevant peer-reviewed publications | |||
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S.J. Skerlos, J. Michalek, and W.R. Morrow. "Sustainable Design Engineering and Science: Selected Challenges and Case Studies." In Sustainability Science and Engineering, 1, M.A. Abraham ed. Elsevier 2005 |
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| relevant presentations | |||
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W.R. Morrow, S.J. Skerlos, Chan K-Y, Hula A, Seliger G, Basdere B, Prasitnarit A. "Economic and Environmental Characteristics of Global Cellular Telephone Remanufacturing" Presented at the Electronics Goes Green 2003 International Congress and Exhibition: Life-Cycle Environmental Stewardship for Electronic Products in Boston, MA May, 2003. |
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| relevant conference abstracts | |||
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S.J. Skerlos, W.R. Morrow, K-Y Chan, A. Hula, G. Seliger, B. Basdere, and A. Prasitnarit. "Evaluating the Profit and Environmental Characteristics Of Global Cellular Telephone Remanufacturing" Proceedings of the Electronics Goes Green 2003 International Congress and Exhibition: Life-Cycle Environmental Stewardship for Electronic Products Boston, MA, May 19-22, 2003. Also in Proceedings of the Colloquium on e-ecological Manufacturing Technical University Berlin, March 27, 2003, pp. 143-147. |
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W.R. Morrow, S.J. Skerlos, G. Seliger, B. Basdere, A. vanDillen. "Use of an Optimization Framework and Life Cycle Assessment for Technological and Logistical Decision-Making in Global Cellular Telephone Remanufacturing" Abstract submitted for presentation at the SETAC LCA and ISIE 11th LCA Case Study Symposium, Lausanne, Switzerland, December 2003. |
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| © 2004-2007 W. Ross Morrow | Last updated 31st October 2007 | |||