Negative-Sum Game
A negative-sum game is a concept in game theory and economics where the total gains and losses among participants sum to less than zero, meaning the overall outcome results in a net loss for the group. It describes competitive situations where resources are destroyed or wasted through conflict, such as in wars, price wars, or destructive competition. This contrasts with positive-sum games (where total gains exceed losses) and zero-sum games (where gains and losses balance out).
Developers should understand negative-sum games to design systems that avoid destructive competition, such as in resource allocation, network protocols, or multi-agent AI systems where conflicts can lead to inefficiencies. It's particularly relevant in blockchain and decentralized applications to prevent scenarios like miner wars or wasteful consensus mechanisms, and in software economics to analyze competitive markets or licensing disputes that harm overall value.