Negative sum games
Negative sum games are a concept in game theory in which value is destroyed; on average, players lose more than they gain. An example of a negative sum game is gambling on the roulette wheel, where there is a higher probability of losses when compared to gains as the house takes a cut.
If continued across many repetitions, playing negative sum games can lead to a complete loss of value.
Discover more terms
What is DeFi decentralized finance?
Fee-only financial planner
VTI
FAANG Stocks
What is the consumer price index (CPI)?
What is a capital loss?