Kinked Experience Curve

Encyclopedia of Business Analytic and optimigation, (2014), 1358.

12 Pages Posted: 5 Aug 2013 Last revised: 26 Mar 2015

See all articles by Yu Sang Chang

Yu Sang Chang

Gachon University - College of Business and Economics

Jinsoo Lee

KDI School of Public Policy and Management

Date Written: August 5, 2013

Abstract

How much productivity improvement or cost reduction would be possible when the number of semiconductor chips fabricated increased from one million to two million? How many more wind farms or photovoltaic farms needed to be installed before their unit cost of producing electricity can become parity with unit cost from the fossil power plant? Can the child mortality rate in the world be reduced by two-thirds between 1990 and 2015? Or, can the prevalence rate from tuberculosis be reduced by 50% between 1990 and 2015? Can experience curve (EC) models provide answers to these questions? We present an extended EC approach known as kinked EC models which are capable of predicting the long-term future performance measures such as accident rate, mortality rate, energy efficiency index, etc. in the context of large learning systems such as nation, region, or even the world.

Suggested Citation

Chang, Yu Sang and Lee, Jinsoo, Kinked Experience Curve (August 5, 2013). Encyclopedia of Business Analytic and optimigation, (2014), 1358., Available at SSRN: https://ssrn.com/abstract=2305937 or http://dx.doi.org/10.2139/ssrn.2305937

Yu Sang Chang (Contact Author)

Gachon University - College of Business and Economics ( email )

Korea

Jinsoo Lee

KDI School of Public Policy and Management ( email )

P.O. Box 184
Seoul, 130-868
Korea, Republic of (South Korea)
822-3299-1060 (Phone)
822-968-5072 (Fax)

HOME PAGE: http://www.kdischool.ac.kr

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
84
Abstract Views
1,130
rank
348,587
PlumX Metrics