he App Store now offers nearly 1 million apps from 350,000 developers. Only 25 of those developers, including King (Candy Crush Saga) and Super Cell (Clash of Clans and Hay Day), make 50% of the revenue—approximately $60,000,000 per month.
It's amazing how persistent this phenomena is of a few garnering a large percentage of whatever is in play. - Todd Hoff
It's the power law, and applies in nature as well. - OCoG of FF, Jimminy
That's the name given to the phenomena. Why does it happen is more interesting. - Todd Hoff
In general, it's self-reinforcing feedback loops, whether natural or virtual. It's just a matter of figuring out what the feedback loop is, in the case mentioned it's actually two symbiotic loops with the app store rankings and also network effects. - OCoG of FF, Jimminy
With capital and finance, placing the capital at risk, with expectation of interest in return, capital will grow itself, which allows one to leverage larger supplies on riskier or more marginal interest terms. - OCoG of FF, Jimminy
With business, they often rely on a virtual loop, via obsolescence or invoking a natural loop in status. For example, Apple gives their products a roughly 3 year obsolescence period, and also promote status reasons, which creates a drive in some individuals which has network like effects. - OCoG of FF, Jimminy
With alpha's, they tend to be stronger, and that strength allows them to self-reinforce. Also helps with progenation, which is an aspect driving many parts of life, as life wants to spread and grow. Itself a largely reinforcing cycle. - OCoG of FF, Jimminy
The hardest part is successfully starting the loop, and entering a cycle. That requires a considerable amount of luck. - OCoG of FF, Jimminy