Zero-Sum Game

What is a Zero-Sum Game?

A zero-sum game is a situation in which one participant’s gain is exactly balanced by another participant’s loss. In such scenarios, the total value available is fixed, and the success of one party comes at the expense of another. In the business world, zero-sum games are often contrasted with positive-sum games, where all participants can benefit.

Examples of Zero-Sum Games

• Financial Trading: In some cases, the profit of one trader may come at the expense of another.
• Market Share Competition: When companies compete for a fixed number of customers.
• Sports Competitions: One team’s victory is balanced by the other team’s loss.

Related Terms and Concepts

Game theory, competitive strategy, positive-sum game, win-win scenario