Terms

Wright's Law

Wright's Law

Wright’s Law claims that for every cumulative doubling in units produced, costs decline at a consistent rate. It requires an understanding of the price elasticity of demand, or how much demand will respond to future price declines.

Wright's Law is a relative of Moore's Law, but it is a function of units, whereas Moore's Law is a function of time.

It has been helpful in forecasting growth in the semiconductor industry—more so than Moore's Law.