Zero-Sum Game

A zero-sum game is a situation in Game Theory where one participant’s gain is exactly balanced by the losses of another participant. In such games, the total utility available is constant, meaning that any advantage gained by one player must be offset by an equivalent disadvantage to another. Common examples include poker, where the Money won by one player comes from the others, and competitive sports, where one team’s victory results in the loss for the opposing team. In Economics, negotiations can also be seen as zero-sum if the resources are limited and gains are taken from another party.