Zero-sum
/ˈzɪəroʊ sʌm/
Definitions
Describing a situation in which one person's or entity's gain results in an equivalent loss for another. The net change in wealth or utility is zero.
/ˈzɪəroʊ sʌm/
Describing a situation where gains and losses balance out.
In a zero-sum market, any gains for one company are necessarily offset by losses for another.
💡 Simply: Imagine a pie. If you cut it in half, and one person eats one half, the other person is left with the other half. What one person gains (eating their half), the other loses (their opportunity to eat the whole pie.)
👶 For kids: When something is zero-sum, it means if one person gets more, someone else gets less.
More Examples
The contract was structured as a zero-sum agreement, ensuring neither party could profit without the other losing.
The debate over resources often framed as a zero-sum scenario, highlighting the scarcity of the shared goods.
How It's Used
"The negotiation was a zero-sum game; one party's success meant the other's failure."
"Some view international trade as a zero-sum competition between nations."
"Chess is a classic example of a zero-sum game because one player's victory is the other's defeat."
Idioms & expressions
Zero-sum game
A situation in which one participant's gain always means an equal loss for the other participant(s).
"Poker is often cited as a zero-sum game."
Derived from game theory, referring to a situation where one party's gain is equivalent to another party's loss. The term originates from the mathematical concept of a sum of zero.
The concept gained traction in the mid-20th century with the development of game theory and its applications in economics, military strategy, and political science.
Memory tip
Think of a seesaw: as one side goes up, the other goes down. The total height change is zero.