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Pareto versus Price's law


dataguy

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Stephen,

Parero's law is the 20 80 rule. Price's law states that the 50% of the productivity of a given group is based on the Square root of the poulation of that group.  In other words 10 people out of 100 are responsible for 50% of the productivity.

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On 08/09/2018 at 5:29 AM, dataguy said:

Parero's law is the 20 80 rule. Price's law states that the 50% of the productivity of a given group is based on the Square root of the poulation of that group.  In other words 10 people out of 100 are responsible for 50% of the productivity. 

The way I understand the 'difference' is that :

The Pareto principle and Price's law are the same thing observed from two different perspectives.

ie. - it takes little effort to get better at something that you have just started out doing and so you will advance reasonably fast compared to the other beginners until you reach the point where you really need to make an effort to get better. = focused training on the essentials will get you to acquire ~70-80% of the total material (Pareto)

However, once you are at that stage, it'll get noticeable very quickly, just how many people are also at that stage and only those few who got what it takes to push past can make a difference from that point on. (Think of any saturated market) They are, who got what it takes to get the really high payoffs, create the true innovations, their number is rapidly declining in the hierarchy as requirements increase for quality and innovation (Lotka, Price... )

 

Vilfredo Pareto

Pareto principle

Derek J. de Solla Price

Price's law (wackopedia)

 

something/another cool thing about Derek Price ("Gears From The Greeks... ")

Antikythera%20MechanismRadiograph.jpg

 

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