The 80/20 rule is a fact of life
Sep. 28, 2017In the late 19th century, economist Vilfredo Pareto demonstrated in his first academic paper that, in his native country of Italy, 20 percent of the population owned about 80 percent of all the land. Pareto then noticed the same pattern of distribution in his garden, where he found that 20 percent of the pods contained 80 percent of the total peas. Named after Vilfredo himself, the Pareto principle, also known as the 80/20 rule or the law of the vital few, is one of the most widely seen statistical phenomena in the world, seemingly evident on both the largest of macro levels (entire country wealth distributions) to the smallest of micro levels (amount of peas in a peapod).