How the internet is transforming the economy

The 'Pareto Principle'- the idea that 20 percent of products generate 80 percent of turnover - may not always be rock. In 2004, the editor in chief of Wired, Chris Anderson claimed that nearly everything is offered for sale on the internet is also actually sold- however bizarre or unnecessary the product.
It appears that business is gravitating to where there is variety instead of uniformity.

Anderson use a demand curve to illustrate his claim. On the far left, the curve rises shortly upwards. Here the best sellers in the blockbusters account for 20 percent. Then the curve levels out gently to the right this is where we find the less popular books & films. It's part of the curve is much wider spanning many more products than the peak. Instinctively one would think that 'Pareto Principle' is right, the best sellers (20 percent) are more profitable than the rest Sales (80 percent). But the figures suggest something different. The long Tail as Anderson calls it, achieves a higher turnover than a few best sellers.

The internet is the worlds largest library. Its just that all the books are eon the floor. John Allen Paulos