Wright's law
E843616
Wright's law is an economic principle stating that the cost of producing a technology decreases by a constant percentage each time cumulative production doubles, due to learning and efficiency gains.
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
economic principle
ⓘ
experience curve concept ⓘ learning curve theory ⓘ |
| alsoKnownAs |
experience curve law
NERFINISHED
ⓘ
learning curve law NERFINISHED ⓘ progress function ⓘ |
| appliesTo |
aerospace manufacturing
ⓘ
automotive manufacturing ⓘ consumer electronics ⓘ energy technologies ⓘ manufacturing industries ⓘ semiconductor manufacturing ⓘ technology production ⓘ |
| assumes |
cost reductions arise from accumulated experience
ⓘ
learning effects are persistent over time ⓘ |
| coreIdea | unit cost declines by a constant percentage when cumulative production doubles ⓘ |
| describes |
cost reductions from learning and experience
ⓘ
learning effects in manufacturing ⓘ relationship between cumulative production and production cost ⓘ |
| field |
economics
ⓘ
industrial organization ⓘ technology economics ⓘ |
| firstFormulatedBy | Theodore Paul Wright NERFINISHED ⓘ |
| hasKeyConcept |
cost decline
ⓘ
cumulative production ⓘ doubling of output ⓘ economies of learning ⓘ experience curve ⓘ learning rate ⓘ organizational learning ⓘ process improvements ⓘ scale-related efficiency gains ⓘ worker learning ⓘ |
| implies |
cost reductions are predictable from cumulative output
ⓘ
early production experience has long-term cost effects ⓘ |
| mathematicalForm | power law relationship between cost and cumulative production ⓘ |
| namedAfter | Theodore Paul Wright NERFINISHED ⓘ |
| originatedIn | aerospace industry studies ⓘ |
| relatedTo |
Moore's law
NERFINISHED
ⓘ
economies of scale ⓘ endogenous technical change ⓘ experience curve ⓘ learning curve ⓘ |
| timePeriod | 1930s ⓘ |
| usedFor |
investment analysis in new technologies
ⓘ
learning curve analysis ⓘ policy analysis for technology deployment ⓘ strategic production planning ⓘ technology cost forecasting ⓘ |
Referenced by (1)
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