nullsummängudes

nullsummängudes is a Swedish term that translates to "zero-sum game" in English. It describes a situation where the total gains of all participants are exactly balanced by the total losses of all participants. In essence, for every winner, there must be a loser, and the sum of their gains and losses equals zero. This concept is fundamental in game theory and economics.

Examples of true zero-sum games are rare in the real world. Often, situations described as zero-sum are approximations. Classic examples include many forms of gambling, where the money wagered by losers is distributed among the winners, minus a house cut. In finance, certain types of derivative contracts can be viewed as zero-sum games, where one party's profit is directly linked to another party's loss.

The term nullsummängudes is primarily used in academic and theoretical contexts. Understanding this concept helps analyze competitive interactions and predict outcomes in scenarios where resources or payoffs are finite and their distribution is the primary focus. It's important to distinguish these from positive-sum games where total gains can exceed total losses, and negative-sum games where total losses exceed total gains.