Practical constraints as the cause for barbell phenomenon

Barbell Phenomenon might exist because the edges in a value distribution are likely to be constrained due to practical limitations of the x variable.

For example, Mac laptops might be more of a uniform value distribution or maybe there’s a slight bump in the mid tier models (13 inch pro). But in general top and bottom of these distributions have the most opportunity for skewing (either lots of value for little cost, or minimum improvement in value for lots of cost).

Another way of putting it…

When you seek to optimize only one variable (the idea behind Barbell Phenomenon), you allow yourself to go as far along along any distribution until you maximize that variable. This means you will run into any inefficiency or any increases in marginal value.

Let’s say you are seeking to maximize variable x which is inversely correlated with variable y. If there is some practical reason that variable y is more constrained than than variable x, then it makes sense to maximize variable x since your marginal decrease in variable y will be reduced.

The idea is that maybe this is what creates barbell distributions. when either cost or quality is practically constrained, then optimizing solely for one over the other may be a wise economic choice.