Bernardo A. Huberman
Dynamics of Computation Group
Xerox Palo Alto Research Center
Palo Alto, CA 94304
huberman@parc.xerox.com
This paper presents a dynamical theory of organizational learning that
explicitly accounts for both the introduction of new routines into the
manufacturing process and improvements in the selection of which procedures to follow. Besides producing a power law of organizational learning with a rate that depends on the effectiveness of the decision procedure, the theory also
accounts for observed anomalies characterized by price increases with
cumulative output.
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