UK Accounting Glossary

In game theory and economic theory, a zero-sum game is a mathematical representation of a situation in which each participant’s gain or loss of utility is exactly balanced by the losses or gains of the utility of the other participants.

A game in which the sum of the pay-offs to players is zero for every outcome.

In a non-competitive two-player zero-sum game a positive pay-off for one player implies a negative pay-off (of equal value) for the other player.

Zero-sum games represent direct opposition between the interests of the players and examples are often used to method to model conflict.

What is an example of a zero sum game?

Poker and gambling are popular **examples** of **zero**–**sum games** since the **sum** of the amounts won by some players equals the combined losses of the others.

In **game** theory, the **game** of “Matching Pennies” is often cited as an **example of a zero**–**sum game**.

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Definitions for Zero-Sum Game are sourced/syndicated from:

**Oxford Dictionary Of Economics****BusinessDictionary.com****Oxford Dictionary Of Accounting****Oxford Dictionary Of Business & Management**

This glossary post was last updated: 5th May 2019.