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
 Microtransaction whale
 Pareto distribution
 Power law
 Regression toward the mean
 Sturgeon's law
 Zipf's law

Category:Economics theorems
Category:Statistics
Category:Problem solving methods