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Why markets are the original nonzero sum games

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by COINS NEWS 143 Views

I keep seeing people here claiming that crypto markets or even all markets are 'zero sum games' and it is clear that this term is deeply misunderstood so this post is here to clear it up.

A zero sum game occurs when one person can't win without another person losing. This does not describe any market. In a free and fair market, people do not win by making others lose. In a market, people win by helping other people win.

Somebody has a bicycle pump but what they need is a loaf of bread. I have lots of loaves of bread but what I need is a bicycle pump. The creation of a marketplace where I can find the person with a pump who needs my bread, and they can find me, creates a win/win situation for both of us. Neither of us has lost anything we needed and both of us have improved our lives. That's a win/win, and that is what is meant by nonzero sum.

A marketplace naturally creates these win/win scenarios, because it is neither selfish nor altruistic but is designed to balance selfishness with altruism. You go to a market not because you want to steal but because you want to both give and take.

In fact, not only are markets nonzero sum games, but they are the original nonzero sum game which gave rise to human civilisation. For much more on this, check out the fascinating and easy-to-read book Nonzero by Robert Wright. And you can look back in my comment history for a lot more recent discussion of this from other threads.

[BTW I think this is my first post in r\cc so I hope it is the kind of thing people want to see here.]

submitted by /u/powellquesne
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