2 ms·
https://web.archive.org/web/20220204033415/https://hbr.org/2022/01/we-need-to-let-go-of-the-bell-curve https://web.archive.org/web/20220204033415/https://hbr.or
by bumbledraven 3y ago
https://web.archive.org/web/20220204033415/https://hbr.org/2022/01/we-need-to-let-go-of-the-bell-curve https://web.archive.org/web/20220204033415/https://hbr.org/2...
> Why is the Pareto distribution the actual norm, instead of the “normal” Gaussian distribution? Perhaps even more importantly, why is it becoming even more so? Most things follow power laws because this is how interconnected complex systems behave. And power laws are becoming ever more ubiquitous because our world operates in increasingly interconnected complex systems. The more interconnected the complex systems, the more pronounced the power law.
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> The realization that we live in a largely Pareto world — inherently unfair, asymmetric, and unpredictable — may feel unpleasant at first. The upside, however, is that systemic change in such a world is much easier and faster. In a Gaussian world, all elements within a system must shift for the entire construction to change, which is laborious, time consuming, and often impossible. In a Pareto world, on the other hand, a change in the tail shifts the entire system — for better or worse.