Pareto Distribution

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Pareto Distribution


Pareto principle after studying the work of Vilfredo Pareto. Pareto was an Italian economist, who observed that 80% of the land in Italy was owned by 20% of the population, and the continuation of his research showed that global distribution of wealth followed the same pattern. 


  • Pareto distribution is commonly used in modeling heavy tailed distributions. 

  • Sarabia and Prieto proposed Pareto positive stable distribution to study city size data. 


It is on this basis that Pareto developed his theory of elites. The central tenet of his argument is that all societies are dominated by elites, that the composition of the elite varies from one society to another, and that membership of the elite changes over time in each particular society. 


In its most general sense, then, an elite of individuals can be identified in relation to any trait or attribute that can be measured on a scale of superiority and inferiority. Activities and occupations can be ranked according to the level or degree of each particular skill or trait that they manifest.


An elite comprises those individuals with the highest ranking in a particular activity, and the overall elite of a society is the category of all such separate elites.


Non-logical actions are driven by sentiments but are invariably rationalised in theories that aim to justify or legitimate these actions, obscuring the real subjectivity by casting the action in a more socially acceptable context of meanings.

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