Zero–sum Game - Definition

Definition

Choice 1 Choice 2
Choice 1 –A, A B, –B
Choice 2 C, –C –D, D
Generic zero-sum game

The zero-sum property (if one gains, another loses) means that any result of a zero-sum situation is Pareto optimal (generally, any game where all strategies are Pareto optimal is called a conflict game).

Zero-sum games are a specific example of constant sum games where the sum of each outcome is always zero. Such games are distributive, not integrative; the pie cannot be enlarged by good negotiation.

Situations where participants can all gain or suffer together are referred to as non-zero–sum. Thus, a country with an excess of bananas trading with another country for their excess of apples, where both benefit from the transaction, is in a non-zero–sum situation. Other non-zero–sum games are games in which the sum of gains and losses by the players are sometimes more or less than what they began with.

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