Day 102:) Zero Sum Game

It is Game Theory concept, where one person’s gain is equivalent to another person’s loss. The game can be played at least between 2 players or as many on the planet. Gambling and Poker are perfect example of zero sum, excluding the fees, as no new wealth is created in it.

Is stock market a zero-sum game?

It is a debatable topic. You can be on either side, depending you are trading or investing. In a short period of time a financial is zero sum game. One is losing and other is gaining, there is no wealth creation whereas in long term it’s a win-win* For instance if one invested $1000 in Netflix at its IPO it would be $340,956 in February 2020. Here it is a win-win for all the shareholders of the company.

Is a cricket match a zero-sum game?

From team’s perspective, obviously it is. One team wins and other loses. From player’s perspective it can be win-win as all of them are growing and taking the game to a newer level.

Different lens gives you different perspectives

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There is no win-win opportunity in zero sum game. One loses and other wins. In life also we look at every situation form zero sum lenses not from win-win. Until it is a sport game between teams, there is always way to have win-win. Recently, Apple and Google tied up to bring the tracking application for covid19. It is a win-win for everyone. Coming up with the win-win is a difficult task. However, if one keeps on practicing one can figure out a way for both the parties to win. No one wants to be on the losing sides.

How do we feel when we are on losing side?

We desperately want to win the next game. Rewording it for the harsh truth, we generally want the other team on the losing side. We don’t look for the win-win opportunity. Let it be a business transaction or communicating with your spouse.

To put in Marc Benioff, CEO and founder of Salesforce, words “I don’t look at business as a zero-sum game. I don’t. I’ve never seen it play out that way in our industry, and I think you innovate, and you add value, deliver value back to customers, and you get value back from the

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*If and only if you are invested in a sound business.