Corporate life · Murphy's laws

Price's law: does the square root of the team really do half the work?

38%: Share of output from the top 10 of 100 people with typical lopsided productivity. Price's law says 50% (model)

The short version: Price's law says half the output comes from the square root of the number of people: 10 out of 100, 100 out of 10,000. It comes from Derek de Solla Price's 1963 book on science, and even a 1976 paper he co-wrote found it doesn't match the data on scientists. In our model with typical lopsided productivity, the square root of the team does about half the work only around 25 people; at 100 it's 38%, at 10,000 it's 9%. Output is very uneven, but the share at the top doesn't shrink as neatly as a square root.

The consultant's slide has one sentence on it: "Price's law: √100 = 10 engineers do 50% of your work." The board is impressed. Someone asks which ten. The consultant suggests a "talent density review".

Kevin, who has the commit data, the ticket data and a free afternoon, decides to check.

The law

Derek de Solla Price, a physicist and historian of science, noticed in his 1963 book Little Science, Big Science that scientific output is very uneven: a few authors write most of the papers. He proposed that half of the papers come from the square root of the number of authors. Price's law has since escaped into management books and online threads about "who really does the work".

The unevenness is real. The square root is the problem. In 1976, Price and four colleagues published a paper in Social Studies of Science showing that the square-root rule doesn't fit with Lotka's law, the better-supported pattern for how many papers scientists write.

Checking it with a model

Output per person in most jobs is lopsided: most people produce a typical amount, a few produce several times more. A standard way to model that is a log-normal distribution, a form of skewness. We gave teams of different sizes log-normal output and measured what share the top √N people produced:

Team sizeTop √N peopleTheir share of output
10363%
25554%
1001038%
1,0003220%
10,0001009%

The square root does half the work at about 25 people and almost nowhere else. In big organisations the square root is far too small a group to carry half the load, however talented. The general point survives: the top 10% of a team often produces a third or more of the output. The neat formula doesn't.

Why the slide is risky

Statistics for noobs: check a rule at more than one size

A rule like "the square root does half" or "20% do 80%" (the Pareto principle) is a claim about the shape of a distribution. The test is to check it at several sizes. If the share changes a lot as the group grows, the rule describes one size, not a law.

Where it costs you money

Stock market returns are also lopsided: a small share of stocks produces most of the long-run gains. That's a reason for owning broadly, not for believing a formula that tells you exactly how many winners there will be.

The moral

Kevin presented his table. The board agreed that productivity was uneven but that the square root was "a bit aggressive", and the talent density review was cancelled. The consultant has a new slide: "√(√100) ≈ 3 engineers do a third of your work." It's been very popular on social media.

What this model can't tell you

The consultant, the board and Kevin's afternoon are an illustration. Price's law is from Derek de Solla Price, Little Science, Big Science (1963); the critique is from Allison, Price, Griffith, Moravcsik and Stewart in Social Studies of Science (1976). The table is our own simulation with log-normal output (sigma 1). Educational content, not business or financial advice.

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