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Pareto principle
Sign in to saveAlso known as law of the vital few, principle of factor sparsity, 80-20 rule, 80–20 rule, Pareto's law, 80/20 rule, 80:20 rule
statistical principle about ratio of effects to causes
The Pareto principle is a statistical observation that a small number of causes often produce a large proportion of effects—for example, a business might find that 20% of its customers account for 80% of its sales. Understanding this principle matters because it helps people and organizations identify and focus their efforts on the few factors that actually drive most of their results, rather than spreading resources equally across everything.
AI-generated from the Wikipedia summary — may contain errors.
In the Vinony graph
Vinony's link graph records 126 inbound references to Pareto principle, and connects out to power law, sociology and computer science.
It sits within the topics Adages, Eponyms in economics and Problem solving methods.
Vinony links it to 54 Wikipedia language editions.
Wikidata facts
- Instance of
- rule of thumb
- Named after
- Vilfredo Pareto
Show 7 more facts
- Commons category
- Pareto charts
- discoverer or inventor
- Joseph M. Juran
- publication date
- 1896-00-00
- copyright status
- public domain
- different from
- Pareto efficiency
- location of creation
- University of Lausanne
- partially coincident with
- Lindy Effect
Sources (3)
via Wikidata · CC0
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Encyclopedic overview
The Pareto principle may apply to fundraising, i.e., 20% of the donors contributing towards 80% of the total.
The Pareto principle (also known as the 80:20 rule, the law of the vital few and the principle of factor sparsity) states that, for many outcomes, roughly 80% of consequences come from 20% of causes (the "vital few").
Excerpted from Wikipedia’s “Pareto principle” article, available under the CC BY-SA 4.0 licence.