What is the correct answer?


In non-constant sum game (non-zero sum game), if there are two parties then:

A. Both parties make better-off

B. Both parties make worse-off

C. Both parties become Neutral

D. Both parties can become better off or worse off

Correct Answer :

D. Both parties can become better off or worse off

Non-constant Sum Game (Non-zero Sum Game)? A non-constant sum game describes a situation in which the interacting parties aggregate gains and losses is either less than zero or more than zero. Situations where participants can all gain or suffer together are referred to as nonzero sum game. Thus, a country with an excess of bananas trading with another country for their excess of apples, were both benefit from the transaction. The sum of the payoffs to the players varies according to the strategies chosen.}

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