Share This Article:

Economic Definition of zero-sum game. Defined.

Offline Version: PDF

Term zero-sum game Definition: A situation in which a fixed amount is divided up among the winners and losers. In a zero-sum game the wins equal the losses. Many stock market, or financial market, exchanges are zero-sum. One person buys low and sells high, while another buys high and sells low. The wealth in such transactions are merely transferred from one person to another. "Productive" market transactions, in contrast, are not zero-sum. The act of producing goods and services from resources that are consumed to satisfy wants and needs results in a net gain to society.


« zero slope | zero-base budget »


Alphabetical Reference to Over 2,000 Economic Terms