I got directed to “The Fall of the Labor Share and the Rise of Superstar Firms” which doesn’t have a table 7. AI says, “For transistors and integrated circuits, the cost reduction typically follows an experience curve where costs decrease by approximately 20-30% for every cumulative doubling of production volume.” This would be ~2 doublings to halve the cost, and is more consistent with my understanding. It’s closer to the other examples. The difference is the that cumulative number of transistors doubles much faster per calendar year, and therefore the cost per transistor falls much faster per calendar year. If it only has to double 0.2 times to halve the cost, that would be 97% cost reduction for every cumulative doubling.
I got directed to “The Fall of the Labor Share and the Rise of Superstar Firms” which doesn’t have a table 7. AI says, “For transistors and integrated circuits, the cost reduction typically follows an experience curve where costs decrease by approximately 20-30% for every cumulative doubling of production volume.” This would be ~2 doublings to halve the cost, and is more consistent with my understanding. It’s closer to the other examples. The difference is the that cumulative number of transistors doubles much faster per calendar year, and therefore the cost per transistor falls much faster per calendar year. If it only has to double 0.2 times to halve the cost, that would be 97% cost reduction for every cumulative doubling.