The experience curve is an economical concept, which 1925 in the US-American aircraft construction were discovered for the first time. The more closely seized term of the learning curve is defined thereby by referring only to the quantity of the work time cumulated. The experience curve refers also different measured variables also.

The concept means that the material unit cost prices sink constantly, if the output (=Ausbringungsmenge), cumulated, increases. Typically the costs sink around 20-30% with a duplication of the output quantity cumulated. This concept means thereby that it is favourable to win as fast as possible large market shares in order by high output the internal costs to lower to be able and thus competition advantages attain.

The development this concept was carried on in the 70's by the Boston Consulting Group, which it marketed as strategic marketing instrument. Therefore it has also the name "“Boston effect"”.

To the experience curve effect mainly two effects contribute:

• Dynamic effect

Here one differentiates between the learning effect, technical progress and the rationalization.

• Static effect

Here fixed cost degression and size of company gradual decrease (scale effects and group effects) are to be regarded

Learning and experience curves are not flatable cost processes, but

• ex ante assumed Potenziale, which must be only still realized however
• ex post office frequently observed cost reductions

See also: Learning curve

Literature: WRIGHT, T.P.: Factors affecting the cost OF of airplane, journal OF the Aeronautical Science, 1936, P. 122-128.

Articles in category "Experience curve"

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• Experience curve effects - Wikipedia, the free encyclopedia
  The learning curve effect and the closely related experience curve effect ... Research by BCG in the 1970s observed experience curve effects for various ...