This unique and deep meaning of power laws perhaps explains our excitement when we first spotted them on the Web. It wasn’t only that they were unprecedented and unexpected in the context of networks. It was that they lifted complex networks out of the jungle of randomness where Erdős and Rényi had placed them forty years earlier and dropped them in the colorful and conceptually rich arena of self-organization.(p.77)
Power laws rarely emerge in systems complete dominated by a roll of the dice. Physicists have learned that most often they signal a transition from disorder to order. The emergence of them on the Internet signaled just such a change and laid groundwork for the establishment of more complex, but orderly, systems of networking.
The long tail theory has facilitated an abundances of niches. The internet and the incredibly vast amount of information available has led to outliers, normally forgotten in retail settings, to be capitalized on. This has also given consumers an abundance of choice and markedly lower prices.
Three Rules:
- Make everything available.
- Cut the price in half, not lower it.
- Help me find it.