Standardization, diversity and learning: Strategies for the coevolution of technology and industrial capacity

Abstract This paper presents a model of industrial process standardization, diversity, and learning. We show that when the effects of learning through diversity are strong, the present value of long-run costs can be minimized with either complete standardization or with complete experimentation where no two plants are similar in the early stages of the industry. We also discuss the relevance of these and other analytical results to the U.S. nuclear industry's standardization policies.

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