Experience curve refers to a diagrammatic representation of the inverse relationship between the total value-added costs of a product and the company experience in manufacturing and marketing it. The concept reviews the history of the term and explores the relationship between production cost and cumulative production quantity.
Experience Curve Definition
A diagrammatic representation of the inverse relationship between the total value-added costs of a product and company experience in manufacturing and marketing it (McDonald and Schrattenholzer, 2001). For many products and services, unit costs decrease with increasing experience. The idealised pattern describing this kind of technological progress in a regular fashion is referred to as a learning curve, progress curve, experience curve, or learning by doing (Dutton and Thomas, 1984; Argote,1999).
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Experience Curve References (4 of up to 20) *
- Argote, L. and Epple, D. (1990) Learning Curves in Manufacturing. Science, Vol. 247, pp. 920-924.
- Argote, L. (1999) Intraorganizational Learning. Graduate School of Industrial Administration Carnegie Mellon University, Pittsburgh, PA.
- Ashby, W.R. (1964) An Introduction to Cybernetics, London.
- Ashby, W.R. (1964) Introductory Remarks at a Panel Discussion. In M. Mesarovic (Ed.), Views in General Systems Theory, John Wiley, Chichester.
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