Cathy Wang

What’s the 80/20 rule? Looking at the income distribution, we can find the existence of power law distribution. We all understand the idea of Pareto’s law of economics, which emerges from his understanding of 80% of the Italy land, was owned by only 20% of the population. The 80/20 rule then later emerges into different areas. Examples like, 80% of profits are produced by only 20% of the employees. 80% of customer service problems are created by only 20% of consumers. It might be hard to see the relation between the 80/20 law and power law in these examples, but we can clearly understand power law if we think about 80% of the money is made by 20% of the population. There are only very few rich people out there (We don’t have 10 Bill Gates or Mr. Trump running … Read More »