Tag: Pareto Principle
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1% Rule (Participation Inequality)
The 1% Rule posits that in any given online community, 1% of the users typically create most of the content, 9% of the users contribute occasionally, and the vast majority, 90%, consume content without contributing.
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Pareto Principle
The Pareto Principle articulates that a select few causes often yield a majority of results. This rule of thumb, rooted in wealth distribution observations, provides a framework for efficiency across various fields. Despite its broad applicability, it remains a guiding heuristic, not an absolute law.
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Fat Tail Events
Fat Tail Events denote uncommon, large deviations from averages, often linked with significant financial shifts. These are characterized by a greater likelihood of extreme occurrences than typical predictions suggest. Their profound impact, as witnessed in events like the 2008 financial crisis, underscores the importance of understanding and managing such phenomena.