The 80/20 Principle: to use or not to use
The phenomenon of discovery and usage of Pareto principle phenomenon is considered. Areas of application of this principle (time-management, ABC-analysis, assortment organizing, Pareto-analysis of optimality) is described. Examples of manifestation of Pareto principle (20% of output, clients or empl...
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| Format: | Article |
| Language: | English |
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Peoples’ Friendship University of Russia (RUDN University)
2010-03-01
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| Series: | RUDN Journal of Economics |
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| Online Access: | http://journals.rudn.ru/economics/article/view/12257 |
| Summary: | The phenomenon of discovery and usage of Pareto principle phenomenon is considered. Areas of application of this principle (time-management, ABC-analysis, assortment organizing, Pareto-analysis of optimality) is described. Examples of manifestation of Pareto principle (20% of output, clients or employers give really 80% of profits, but 80% of output, clients or employee give only 20% of profits; 20% of people have 80% of money; 80% of INet sites consumers visit 20% of sites; 20% of criminals make 80% of crimes; 20% of drivers make 80% accidents etc.) are displayed. Errors in attempts of mathematical foundations of Pareto principle are shown. Examples of absence of manifestation Pareto principle in practice are described. Theoretical foundations of «anuniversity» of Pareto principle usage are presented. Possibilities of declination of Pareto principle to trivial of decision making lows are demonstrated. |
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| ISSN: | 2313-2329 2408-8986 |