When tasks are complementary, output depends on the weakest step, so quality clusters and small failures are costly.
Kremer's 1993 model, named for the Challenger's failed seal. Where every step must go right, high-skill workers cluster together and the value of one weak step is enormous — which explains wage gaps between countries.
In practice
- A launch with excellent engineering, excellent design and a broken payments integration converts nobody.
- An aircraft assembled from four superb components and one substandard fastener is a substandard aircraft.
- Subject
- Risk & Reliability
- Essay
- How accidents actually happen