Sunday, January 3, 2010

ZERO-SUM GAME

When the gains made by winners in an economic transaction equal the losses suffered by the losers. It is identified as a special case in game theory. Most economic transactions are in some sense positive-sum games. But in popular discussion of economic issues, there are often examples of a mistaken zero-sum mentality, such as “profit comes at the expense of wages”, “higher productivity means fewer jobs”, and “imports mean fewer jobs here”.

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