Tuesday, November 27, 2007

Non-zero sum game

The Selfish Gene
P. 222-233
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What is a non-zero sum game?
"In zero-sum games, the fortunes of the players are inversely related. In tennis, in chess, in boxing, one contestant's gain is the other's loss. In non-zero-sum games, one player's gain needn't be bad news for the other(s). Indeed, in highly non-zero-sum games the players' interests overlap entirely. In 1970, when the three Apollo 13 astronauts were trying to figure out how to get their stranded spaceship back to earth, they were playing an utterly non-zero-sum game, because the outcome would be either equally good for all of them or equally bad. (It was equally good.)
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Back in the real world, things are usually not so clear-cut. A merchant and a customer, two members of a legislature, two childhood friends sometimes—but not always—find their interests overlapping. To the extent that their interests do overlap, their relationship is non-zero-sum; the outcome can be win-win or lose-lose, depending on how they play the game." Taken from http://nonzero.org/gametheory.htm
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What is a zero-sum game?
In game theory, zero-sum describes a situation in which a participant's gain or loss is exactly balanced by the losses or gains of the other participant(s). It is so named because when the total gains of the participants are added up, and the total losses are subtracted, they will sum to zero. Chess and Go are examples of a zero-sum game: it is impossible for both players to win. Zero-sum can be thought of more generally as constant sum where the benefits and losses to all players sum to the same value. Cutting a cake is zero- or constant-sum because taking a larger piece reduces the amount of cake available for others. In contrast, non-zero-sum describes a situation in which the interacting parties' aggregate gains and losses is either less than or more than zero. Taken from http://en.wikipedia.org/wiki/Zero-sum

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