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Game Theory

Zero-Sum Game Theory

In game theory, there exists a distinct category of games known as zero-sum games, which are a subtype of constant-sum games. In these games, the available resources remain fixed; they cannot be increased or decreased. Additionally, the total benefit derived from all possible combinations of strategies always sums to zero. Consequently, in zero-sum games, one player’s win directly corresponds to another player’s loss, and vice versa. The term “zero-sum” indicates that the sum of benefits for all players in any outcome equals zero, highlighting the opposing interests of the participants.

Conversely, there are numerous games within game theory categorized as non-zero-sum games, wherein the net result of the outcome is either greater than or less than zero. In these scenarios, one player’s gain does not necessarily equate to another player’s loss. Such games are referred to as non-zero-sum games, where the interests of the players may align or diverge depending on the specific circumstances and strategies employed.