On Zero Sum Games
Zero-sum games create zero-sum mindset. The complex art of building games that create abundance mindsets and winners everywhere.
In this post, I’ll explain why zero-summed games are bad, why we all default to playing them, and how to setup a better game where you have increased odds of winning.
Spoiler alert, the better game for everyone involves playing with, not against, your competition.
What Are Zero Summed Games?
Zero-sum is a situation, often cited in game theory, in which one person's gain is equivalent to another's loss, so the net change in wealth or benefit is zero. One must lose for another to win.
In life, there’s many games at play. The only one that really matters is your personal and overall well being.
Often, we get caught up in all the micro games of life.
That person cut me off on the road, and they can’t “win”.
That guy got the last word in the argument, and he can’t “win”.
My competitor seems to doing everything right, and we must “win”.
These are all zero-sum games. One where there’s a singular winner and every one else must lose.
Zero-sum games are not only detrimental to society as a whole, but to everyone who plays - except the ultimate winner.
Humanity Burns Down with Zero Sum Games
I personally believe humans, while complex, are good.
I also believe two driving forces of humans make them bad, unchecked. Ego and Competition.
Zero-sum games are designed to bring forth everything that makes humans terrible. Don’t believe me, go watch Alice in Borderland which does an amazing job illustrating what zero-sum games will do to humans.
Zero-Sum Game Playing Creates Zero-Sum Mentality
When we engage in zero-sum games, we reduce ourselves to a zero-sum mindset.
“I have mine, and I must take theirs.”
This is a dangerous mindset to embrace, and generally never leads so positive outcomes in the long run.
Worst case (best case?), you’ll end up with all the chips and always worried of losing them.
That’s a shitty life, I’d argue.
We Are Trained To Reduce Games to Zero Sum
Everything we’ve experienced in life tells us there’s always one winner. There’s never a co-champion in any major sport. There’s no such thing as co-presidents or co-ruling parties.
However, if you remove yourself from thinking about life as a zero summed effort, you can quickly realize there’s lots of ways to structure games to there’s multiple winners.
Monopolies are Zero-Sum - And Illegal
In fact, in business as a whole, one winner is seen as bad. So bad, the concept of one business owning an entire industry as been heavily regulated in many countries.
This is because one winner isn’t good for anyone - except the shareholders of the winner.
Having a choice between Ford or GM when looking at a truck is net positive for the consumer.
Play Enlightened People Games
Let me state this clearly - enlightened (and often wealthy) people avoid zero-sum games. The risk and the outcome of a zero-sum game does not make it attractive to play.
If you’re a small business owner looking to get ahead - the first place to look is at how wealthy people and big companies play their games.
It’s quite different than how games are played on Main Street.
Where many small businesses go wrong is they think Ford and GM executives must hate each other. They must be playing zero-summed games.
I can promise you they aren’t. I am sure they understand that Ford’s success is reliant, partially, on GM’s success. And vice versa. I also would wager that the CEO’s of “rival” companies probably have a closer relationship that you do with the gym across the street from you.
You know - that one that stole a coach from you, and you hate? That one.
Value-Additive Games To Play
Ok, so we know what games we shouldn’t play? What games might we play?
Personally, I always look for three-sided (or more) games that create a winning outcome for everyone playing.
This can, shockingly enough, even include a competitor.
This also can mean the competitor is playing the game whether they know it or not (but generally speaking if they buy in and play the game, they would win even more).
How do you play games with competitors when they don’t even realize they’re playing? That’s a post for another day.
How do you structure games for your competitors to play and never realize they’re playing. That’s a longer post for another day. =)
In order for a tri-sided game to work with positive outcomes for all, there has to be one truth at play: Everyone has to be willing to give a little to win more.
If we’re talking about a game where all players know they’re playing - it would also require all players to have a baseline trust that the end result is better for all playing, and no player will deviate from the game.
This is why I particularly like tri-sided games because when one player begins to deviate, the other two parties can leave to find a new third partner.
What Zero-Sum Games Do You Engage In?
Ask yourself this question - and then ask “why?”.
How can you possibly benefit by turning a zero-sum game into a multi-winner game? How can others benefit?
Can you find another partner and build a tri-sided game where everyone can benefit?
Go forth and find your answers!