Pareto analysis is a formal technique useful where many possible courses of action are competing for attention. In essence, the problem-solver estimates the benefit delivered by each action, then selects a number of the most effective actions that deliver a total benefit reasonably close to the maximal possible one.

A technique used for decision making based on the Pareto Principle, known as the 80/20 rule. It is a decision-making technique that statistically separates a limited number of input factors as having the greatest impact on an outcome, either desirable or undesirable. Pareto analysis is based on the idea that 80% of a project's benefit can be achieved by doing 20% of the work or conversely 80% of problems are traced to 20% of the causes.

In its simplest terms, Pareto analysis will typically show that a disproportionate improvement can be achieved by ranking various causes of a problem and by concentrating on those solutions or items with the largest impact. The basic premise is that not all inputs have the same or even proportional impact on a given output. This type of decision-making can be used in many fields of endeavor, from government policy to individual business decisions.

www.aeaweb.org [PDF]

… 3 COATE: PARETO-IMPROVING CAMPAIGN FINANCE POLICY … First, there are those analyses that assume, as does this paper, that campaign advertising is … Ashworth's (2003) analysis, written indepen- dently of this paper, reaches policy conclusions more consonant with …

www.emerald.com [PDF]

… 3 COATE: PARETO-IMPROVING CAMPAIGN FINANCE POLICY … First, there are those analyses that assume, as does this paper, that campaign advertising is … Ashworth's (2003) analysis, written indepen- dently of this paper, reaches policy conclusions more consonant with …

www.aeaweb.org [PDF]

… 3 COATE: PARETO-IMPROVING CAMPAIGN FINANCE POLICY … First, there are those analyses that assume, as does this paper, that campaign advertising is … Ashworth's (2003) analysis, written indepen- dently of this paper, reaches policy conclusions more consonant with …

www.tandfonline.com [PDF]

… 3 COATE: PARETO-IMPROVING CAMPAIGN FINANCE POLICY … First, there are those analyses that assume, as does this paper, that campaign advertising is … Ashworth's (2003) analysis, written indepen- dently of this paper, reaches policy conclusions more consonant with …

www.tandfonline.com [PDF]

… 3 COATE: PARETO-IMPROVING CAMPAIGN FINANCE POLICY … First, there are those analyses that assume, as does this paper, that campaign advertising is … Ashworth's (2003) analysis, written indepen- dently of this paper, reaches policy conclusions more consonant with …

www.tandfonline.com [PDF]

… 3 COATE: PARETO-IMPROVING CAMPAIGN FINANCE POLICY … First, there are those analyses that assume, as does this paper, that campaign advertising is … Ashworth's (2003) analysis, written indepen- dently of this paper, reaches policy conclusions more consonant with …

link.springer.com [PDF]

… 3 COATE: PARETO-IMPROVING CAMPAIGN FINANCE POLICY … First, there are those analyses that assume, as does this paper, that campaign advertising is … Ashworth's (2003) analysis, written indepen- dently of this paper, reaches policy conclusions more consonant with …

www.emerald.com [PDF]

… 3 COATE: PARETO-IMPROVING CAMPAIGN FINANCE POLICY … First, there are those analyses that assume, as does this paper, that campaign advertising is … Ashworth's (2003) analysis, written indepen- dently of this paper, reaches policy conclusions more consonant with …

www.tandfonline.com [PDF]

… 3 COATE: PARETO-IMPROVING CAMPAIGN FINANCE POLICY … First, there are those analyses that assume, as does this paper, that campaign advertising is … Ashworth's (2003) analysis, written indepen- dently of this paper, reaches policy conclusions more consonant with …

Tags:aggregateanalysisbasedbenefitbusinesschartconceptdefinitiondistributioneconomiceconomicseconomistefficiencyfactorsfinancefinancialideaimportantinstituteitemsmakingmanagementnamedpercentprincipleproblemproblemsprojectqualityresultsrulesalessciencessocialsolutionsstatestatesstepsupplytheorytoolwork

Pareto analysis is a type of statistical analysis that helps in identifying the most significant causes of problems.

You can use it in many fields including government policy and individual business decisions.

The idea behind this method is that 8 of a project's benefit can be achieved by doing 2 of the work or conversely 8 of problems are traced to 2 of the causes.

Vilfredo Federico Damaso Pareto was an Italian engineer and economist who developed this method in 1906.

The word "Pareto" means "the law of the vital few".

You can use this method in business, economics, engineering, and other fields.