Learning by Doing and Simulating: Driving Efficiency and Social Outcomes

The process of 'learning by doing' is not only limited to individual experiences but also happens in a distributed manner within organizations, allowing for rapid knowledge sharing. Companies are now moving towards simulating the learning process by modeling millions of prototypes in computer simulations, leading to quicker efficiency gains. Starting from a good point can impact the ongoing learning rate. By recognizing the value of economies of learning and compounded knowledge through technology, we can drive social outcomes like welfare and prosperity in a more deliberate manner, rather than relying on arbitrary decisions.