Economics & market laws · law 029
Wright's Law (Experience Curve)
Also known as: Experience curve · Learning curve
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
what it means
Every time cumulative production doubles, the cost per unit falls by a roughly constant percentage.
How Wright's Law works
Teams get faster, processes improve, suppliers get better, and waste falls as volume accumulates. Many industries show 10–30% cost declines per doubling of cumulative output; solar panels are a famous modern example.
Strategically, the experience curve rewards whoever builds volume first — they can cut prices and still earn margins competitors cannot match.
where it comes from
Aeronautical engineer Theodore Wright published it in 1936 after studying aircraft manufacturing. Bruce Henderson's Boston Consulting Group turned it into the ‘experience curve’ strategy concept in the 1960s.
Wright's Law examples in business
Solar
Solar module prices have fallen dramatically over decades as global cumulative production multiplied.
Manufacturing
A packaging unit's 10,000th order runs with far less waste and setup time than its 100th.
Services
A tax-filing firm's cost per return falls as staff build templates and checklists from thousands of filings.
How to apply it
- 1Track your cost per unit against cumulative volume, not just time.
- 2Capture learning deliberately with SOPs and checklists.
- 3Price for future volume when competing for scale, if your cash allows.
- 4Watch competitors with more cumulative volume — they may have a lasting cost edge.
common misreading
Cost declines are not automatic — they come from deliberate learning and process improvement.
ask yourself
Is your cost per unit falling as you grow, or are you repeating the same work at the same cost?
put it into practice
Frequently asked questions
What is Wright's Law?
Every time cumulative production doubles, the cost per unit falls by a roughly constant percentage. Teams get faster, processes improve, suppliers get better, and waste falls as volume accumulates. Many industries show 10–30% cost declines per doubling of cumulative output; solar panels are a famous modern example.
Who came up with Wright's Law?
Aeronautical engineer Theodore Wright published it in 1936 after studying aircraft manufacturing. Bruce Henderson's Boston Consulting Group turned it into the ‘experience curve’ strategy concept in the 1960s.
How do you apply Wright's Law in business?
1. Track your cost per unit against cumulative volume, not just time. 2. Capture learning deliberately with SOPs and checklists. 3. Price for future volume when competing for scale, if your cash allows. 4. Watch competitors with more cumulative volume — they may have a lasting cost edge.
What is a common misunderstanding of Wright's Law?
Cost declines are not automatic — they come from deliberate learning and process improvement.