PARETO's PRINCIPLE 1)2)5)
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A rule according to which 20% of the people concentrate 80% of the resources, or income.
Similar types of ratios are known, as for example Zipf's Law, which says that in a sufficiently large collection of elements (as for instance the words in a book) the second most numerous item will occur about half as often as the most common, and so on in an inverse ratio: 3 / one third, 4 /one fourth, etc.
Pareto's Principle seems thus closely related to power laws and order parameters (HAKEN) and to WEIERSTRASS renormalization function, which defines an inverse relation between frequencies and amplitudes. Such inversely proportional relations appear in a number of natural phenomena (earthquakes, hurricanes) or economic ones (markets fluctuations and crashes).
Similar complementary ratios are showing now in the electronic world web, where some few sites have many pages when most others have quite few. The same relation seems to exist among a few much visited sites and many rarely visited ones.
Thus Weierstrass, Pareto, Zipf, Haken and probably others have discovered the same basic model under different guises. The status of the model is clearly systemic in its most general isomorphic form, which is probably a generalized power law or its mathematical expression as the renormalization function.
Categories
- 1) General information
- 2) Methodology or model
- 3) Epistemology, ontology and semantics
- 4) Human sciences
- 5) Discipline oriented
Publisher
Bertalanffy Center for the Study of Systems Science(2020).
To cite this page, please use the following information:
Bertalanffy Center for the Study of Systems Science (2020). Title of the entry. In Charles François (Ed.), International Encyclopedia of Systems and Cybernetics (2). Retrieved from www.systemspedia.org/[full/url]
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