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0 pointsgruez1y ago0 comments

I thought the Pareto distribution was most famously associated with 80-20? Of course you can change α to get whatever ratio you want but this is the first time I heard of the 50-1 ratio being used.

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coldtea1y ago

The Pareto can be applied recursively. If 20% of the people have 80% of the wealth, then 20% of them will have 80% of that 80% (64%) and so on

zmgsabst1y ago

They’re the same:

20% of 20% of 20% (or 0.8%) of people will hold 80% of 80% of 80% (or 51.2%) of the wealth.

gpderetta1y ago

A power-law distribution probably describes it better.

queuebert1y ago

Pareto is a power-law distribution.

NoobSaibot1351y ago

Seems like Pareto 80/20 law is not too dissimilar from powers of 2.

In binary, most significant(left most) bit is twice the magnitude of the previous bit. So that bit (or person) would contribute and get compensated accordingly.

Would also be similar to segment trees with each leaf node having a value of 1 with parents recursively summing the children?

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