Posted in Finance, Accounting and Economics Terms, Total Reads: 790
Definition: Constant Sum Game
Game theory consists of 2 types of interests. In the 1st case the interests of the players are completely opposed, i.e. ‘Mutually Exclusive” and in the 2nd case the interests of players are not completely opposed.
The strategy where the interest is exactly contradictory is called a constant sum game. Here, if one player wins, the other loses. I.e. the gain of one person is compensated by the loss of another. Therefore the overall loss/gain is zero. Here the resources are neither decreased nor increased.