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0 sats \ 2 replies \ @Undisciplined 5 Feb 2024 \ parent \ on: 10% of alcoholics buy 75% of beverage companies alcohol - long tail isn't real! econ
That's just one example of the 80/20 rule. It is a general rule about how quantities tend to be distributed (specifically, it is a colloquial term referring to Pareto distributions). It applies to many situations (like the ones you're mentioning) and it seems like you are simply unaware of the fact that economists are well aware of this phenomenon.
If they were they wouldn't fund so many startups around this.
Btw, I think you still haven't understood the difference. The 80/20 rule is true and works, while long tail doesn't. https://www.investopedia.com/terms/l/long-tail.asp
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selling low volumes of hard-to-find items to many customers
That is not what alcohol companies are doing. Alcohol is not hard to find. Thanks for the link, though. I do get what you're talking about now.
You may be right about this being a generally poor business strategy. It's not economists who are funding startups, though.
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