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by CuriouslyC 2449 days ago
The distribution of ability is a bell curve (which has small tails, btw) but the distribution of rewards is basically power law. The result is that people only slightly different in ability can have wildly different rewards.
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Power laws can arise as natural consequences of aggregation of high variance data. General Central Limit Theorem says distributions of data with limited variability tend to follow the Normal (bell-shaped, or Gaussian) curve, but aggregation of high (or infinite) variance data leads to power laws. Thus, the bell curve is normal for low-variance data and the power law curve is normal for high-variance data.