The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

PARETO PRINCIPLE Definition & Legal Meaning

Definition & Citations:

A theory which states that if a larger number of people, or agents are contributing to any result, the major part of the portion, around 80 percent is because of the minority, around 20 percent. Investigations and theories have stated that the sales of a firm were generated commonly by only 20 percent of the customers. The Pareto Principle is based after its founder, Vilfredo Federico Damaso Pareto, and is also known as the principle of imbalance. However, it is not a scientific process.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.