Research on the Integration and Transition of Pareto Principle and Long Tail Theory

Abstract

Long tail theory doesn’t replace Pareto principle. On the contrary, both of them operate in the economics of abundance. In the condition of abundant products, the adaptability and importance increase for Pareto principle. Meanwhile, the long tail effect brought by abundant economy can not be ignored. The effect includes increased “hot” products, “hot” products converted from “cold” products, the long tail turning to be longer and fatter and the curve of long tail turning to be smoother. The application of long tail theory instead of Pareto principle needs to lower production cost and transition cost, effective search and massive customized production. Key words: Pareto principle; Long tail theory; The economics of abundance; Integration; Transition