Least cost formulations for surimi seafood were studied by linear programming (LP) and nonlinear programming (NLP). The effects of water and starches on functional properties of Alaska pollock and Pacific whiting surimi gels were investigated. Six starches (modified potato starch, potato starch, modified wheat starch, wheat starch, modified waxy corn starch, and corn starch) and their mixtures were used as ingredients. Mixture and extreme vertices design were used as experimental designs. Canonical models were applied to the optimization techniques. Blending different kinds of surimi showed linear trends for each functional property, so that LP was successfully employed to optimize surimi lots. Strong interactions were found between surimi and starch or in starch mixtures. Two optimum solutions, obtained from LP and NLP, were compared in this study. Corn starch and modified waxy corn starch greatly improved the functional properties. / Graduation date: 1997

The dissertation has three main chapters on product quality innovation. First, we compare innovation effort and social welfare between monopoly, duopoly, and the social planner in a dynamic model with quality dependent on a continuous know-how stock. The technology frontier--the largest reachable know-how socks--does not always positively depend on competitiveness, i.e. a duopoly may technologically surpass the social planner. However, social welfare is always positively tied to competitiveness. Second, with a general equilibrium model, we derive a relative price function expressing productivity and quality effects, and develop a method for inferring relative quality changes. An application to services versus goods of the US from 1946-2006 provides evidence on aggregate quality changes and suggests us to incorporate quality variations when explaining relative prices. Third, we build a two-product model where productivity changes lead to reallocations of labor between quantity production and quality innovation. The correlation between relative productivity and relative quality is negative for low-range substitutability and positive for medium-range substitutability between two products. Looking at services versus goods of the US, the correlation is negative and productivity-driven quality can play a significant role in general quality development.