what distinguishes a postive sum game from a negative sum game?course hero

by Michelle Dach 3 min read

What is the difference between positive and negative sum games?

Apr 16, 2017 · Question 8 2 out of 2 points What distinguishes a postive sum game from a negative sum game? Selected Answer: whether competition creates benefit or imposes cost on players Correct Answer: whether competition creates benefit or imposes cost on players

What are zero-sum and positive-sum games?

Zero-sum, positive-sum, and negative-sum are all game theory terms that refer to the outcomes of a dispute or negotiation. They refer to the actual amount of wealth (money, land, vacation time) -- measurable rewards -- that each party receives. Though similar, these terms differ from the terms "win-win, win-lose, and lose-lose" which refer to ...

What is a negative-sum game in economics?

Dec 17, 2017 · Question 21 0 out of 5 points What distinguishes a postive sum game from a negative sum game? Selected Answer: the outcome of a positive sum game results in increased cost whereas the outcome of a negative sum game results in decreased cost Correct Answer: whether competition creates benefit or imposes cost on players

Is the development of a civilization a positive-sum game?

Feb 13, 2018 · In economics, the creation of new things of value changes the game from being a zero-sum game to being a positive-sum game. On a macroeconomic scale, the development of civilization is a...

Why are negative sum disputes not always lose-lose?

However, negative-sum disputes are not always lose-lose because if the parties know the pie is shrinking, it is possible their expectations will be low. A perfect example of a negative-sum dispute is the allocation of budget cuts within an organization.

What is zero sum?

Zero-sum, positive-sum, and negative-sum are all game theory terms that refer to the outcomes of a dispute or negotiation. They refer to the actual amount of wealth (money, land, vacation time) -- measurable rewards -- that each party receives.

Zero-Sum Games

Many children in America can remember playing the 1935 Parker Brother's classic board game Monopoly, but the idea that became the board game was actually conceived decades earlier by economist Elizabeth Magie as an object lesson in anti-monopoly land policy. The board game is also helpful in understanding some of the elements of game theory.

Positive-Sum Games

But how would the game change form if the number of properties or the amount of money available was not constant? What would the impact be if a player nearing bankruptcy was able to leverage their creativity and innovation in order to introduce new properties or to add new money to the game? In economics, the creation of new things of value changes the game from being a zero-sum game to being a positive-sum game.

Negative-Sum Games

In 1995, if a consumer wanted to watch a movie, they might take a short drive to the local video rental store and choose a title. In 2015, they might select a title from 300 options made available to them on their mobile devices, computers, and televisions - all without leaving their house.

Game Theory in Negotiations

Although there many economic applications of game theory, positive-, negative-, and zero-sum games can be used to guide negotiations. Returning back to the board game Monopoly, when only two players are engaged in the game, the strategy is simple.

What is equilibrium strategy?

the equilibrium strategy involves alternating between a dominant strategy and a Nash strategy. one player has a pure strategy, and one does not. the strategies chosen by the players represent different behaviors. the equilibrium strategy is an assignment of probabilities to pure strategies.

What is Firm B's dominant strategy?

Firm B's dominant strategy is to produce low levels of output, but Firm A does not have a dominant strategy. Both firms produce high levels of output. Firm A's dominant strategy is to produce low levels of output, but Firm B does not have a dominant strategy.

What is strategy A?

strategy A is the best response to the best strategy of the other player. irrespective of any of the possible strategies chosen by the other players, strategy A generates a higher payoff than any other strategy available to player X. every outcome under strategy A generates positive payoffs.

Is advertising a constant sum game?

Yes, each firm can contribute zero to 100 percent of the advertising budget, so this is a constant-sum game. No, the outcome of the advertising campaign depends on how much money the firms contribute to the campaign, so it is not constant sum. No, the firms are independent, so their interaction cannot be cooperative.