Here's the bottom line: Any finite resource is a ZSG. Even an infinite resource has only 100% of marketshare, to be divided amongst competitors. That percentage is also a ZSG.
Let's see how some of these zero sum issues apply to different areas:
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Markets: are probably the best example of a ZSG. In 2000, the Wishire 5000 was worth $1.2 trillion more than it is today. Some people bought, some people sold. Mark-to-market, there is a loss to the collective buyers from the collective sellers. Its even more specific with individual companies.
I short the SPX to you -- each tick is zero sum -- there's a winner and a loser.
Stocks that always go up and never go down are exempt from this; Please let me know as soon as you find any.
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Sunday, October 29, 2006
zero-sum games and oil
Posted by Unknown at 10:04 PM
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