Pure logical would dictate that (and indeed a convex demand curve) that as you ‘slide’ down the curve, the price / cost would become lower. Yet in practice, this hardly ever happens? Big Question mark…
Is this because the further we slide down the Experience Curve, the more utilitarian (fancy economic term we used there!) the benefit becomes? Yet, it also adds to the overall risk of the Experience or Value being added.
Is this a counter intuitive argument or are we just getting plain confused by the inverse relationship?
theMarketSoul (c) 2013
- Learning curves – steep or shallow? (justa90schild.wordpress.com)
- Elasticity, slope, scale, and collusion (worthwhile.typepad.com)
- Is “Y=C+I” a PPF? (worthwhile.typepad.com)
- Running a business (corporatetips.wordpress.com)
- Corporate strategy advanced … but left communications behind (jon8332.typepad.com)
- Beating the Learn Curve (LearnThis.ca)