Search Theory and the Manufacturing Progress Function

John Muth

Management Science, 1986, vol. 32, issue 8, 948-962

Abstract: A theory based upon random search within a fixed population of technological possibilities is used to explain the manufacturing progress function. The theory is consistent with the power function relation between unit costs and cumulative output that has frequently been observed. It is also consistent with initial rates of improvement smaller than those predicted later by the power function relation, the eventual cessation of cost reduction, and an irregularity of improvements. Existing theories in the literature either fail to agree with the main empirical phenomena or else assume precisely what they attempt to explain.

Keywords: production/scheduling: work studies; learning; search and surveillance; technology (search for similar items in EconPapers)
Date: 1986
References: Add references at CitEc
Citations: View citations in EconPapers (41)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.32.8.948 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:32:y:1986:i:8:p:948-962

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().