Experience curve effects

This article is about fall in costs with increased experience in production. For other uses, see Learning curve (disambiguation).
An example of experience curve effects: Swanson's law states that solar module prices have dropped about 20% for each doubling of installed capacity.[1][2]

In industry, models of the learning or experience curve effect express the relationship between experience producing a good and the efficiency of that production, specifically, efficiency gains that follow investment in the effort. The effect has large implications for costs[3] and market share, which can increase competitive advantage over time.[4]

  1. ^ "Solar (photovoltaic) panel prices vs. cumulative capacity". OurWorldInData.org. 2023. Archived from the original on 29 September 2023. OWID credits source data to: Nemet (2009); Farmer & Lafond (2016); International Renewable Energy Agency (IRENA).
  2. ^ "Swanson's Law and Making US Solar Scale Like Germany". Greentech Media. 2014-11-24.
  3. ^ Hirschmann, Winfred B. (1964-01-01). "Profit from the Learning Curve". Harvard Business Review. No. January 1964. ISSN 0017-8012. Retrieved 2020-11-17.
  4. ^ Henderson, Bruce D. "The Experience Curve – Reviewed II: History, 1973". Retrieved 2013-04-05.