Zero-Sum
What does ‘Zero-Sum’ mean? Zero-sum refers to a situation where one party’s gain equals the loss of the other party. If you were to add up both parties gains and deduct their losses, you would be left with nothing, zero! Hence the term ‘Zero-Sum game’. This is also referred to as “Win/ Lose” or “Fixed Pie” Negotiation.
In a zero sum negotiation, the gain of one party is exactly balanced by the loss of the other party. This means that the total amount of resources, such as money or time, remains constant and any gain made by one party must come at the expense of the other party. Zero sum negotiations can be contentious because both parties are trying to maximise their own gain, which often leads to a competitive and adversarial dynamic.
Examples of zero sum negotiations include poker, where one player’s winnings come at the expense of the other players’ losses, and wage negotiations between an employer and employee, where the employer may offer a higher salary but at the expense of lower profits.