What is Pareto principle?
The '''Pareto principle''' is a concept introduced by [[Vilfredo Pareto]] That shows in many fields, 20% of the subject matter consumes 80% of use. This theorem came from [[Vilfredo Pareto]]'s research on [[economics]], and buying habits. Some also argue that the Pareto principle may be a reflection of inherent imbalances in nature and systems, where a small portion of inputs disproportionately influences the larger outcome. == Reasoning == It is currently unknown why this phenomenon occurs, or why it is so prominent in every facet of the universe. Some hypothesize that it is a law of [[physics]], that causes everything to act in such a way, While others hypothesize it could simply be a quirk of the human brain, spurring results to occur in this fashion. == Examples == In any given room, 20% of the floor is walked on 80% of the time. In all languages, 20% of words are used 80% of the time. 20% of criminals commit 80% of crimes. 20% of employees are responsible for 80% of the results. 20% of a store's products make up 80% of sales. ==Related pages== * [[Keystone species]] * [[Matthew effect]] * [[Megadiverse countries]] * [[Free-to-play#Comparison with traditional model|Microtransaction whale]] * [[Pareto distribution]] * [[Power law]] * [[Regression toward the mean]] * [[Sturgeon's law]] * [[Zipf's law]] [[Category:Economics theorems]] [[Category:Statistics]]