What is right and wrong zero-sum game?

zero-sum game

What he gets will be lost by me, and the sum of gains and losses can only get zero.

Competitors are changing, and the winner's income and the loser's loss are equal to zero.

The so-called zero sum is a concept in game theory, which means that when two parties play a game, one party's gain inevitably means the other party's loss, and the other party loses as much as one party gains. It is called "zero sum" because the sum of "gains" and "losses" of winners and losers makes the total zero. In the zero-sum game, the two sides have no chance to cooperate.

"Zero-sum game" means that players lose and win, and the sum of gains and losses of all parties involved in the game is zero. Generally speaking, one side always wins and the other loses. If the winner is 1 and the loser is 1 L, then the sum of the scores of the two players is: 1+(- 1)=0.

Zero-sum game belongs to non-cooperative game, that is to say, the gain of Party A in the game must be the loss of Party B, that is, the sum of all players' gains is zero. In the zero-sum game, all participants aim at their own best interests when making decisions. As a result, neither the collective best interests nor the individual best interests can be realized. It is difficult for all players to cooperate unless there is a credible promise or an executable punishment as a guarantee.

In the actual trend of financial market, the whole process of ideal zero-sum game is close to a semicircle.

The definition of zero-sum game in the stock market can be expressed as:

Loser's loss+cash dividend = winner's income+financing+transaction cost. (The left side of the equation is the provider of stock market funds, and the right side is the requester of stock market funds)