Question

In: Economics

Explain why win-win situation is better than trade is a zero-sum game.

Explain why win-win situation is better than trade is a zero-sum game.

Solutions

Expert Solution

Zero-Sum

It is a movement or methodology that looks for a more significant portion of existing an incentive without including new worth. This is regularly alluded to as in light of the fact that any worth you gain must be taken from another person.

Win-Win

It is an action or system that makes new worth. By creating new value, it is workable for all members to pick up.

Win-Win is better

Example: A land onlooker purchases houses and afterward quickly exchanges them. They want to utilize to get a benefit on this movement. They don't improve the property past a couple of corrective changes. This is a zero-sum action since it isn't making anything of significant worth. The individuals who purchase from the examiner follow through on a more considerable expense at that point on the off chance that they had bought from the first proprietor, yet they get no additional worth.

For instance of a successful win action, a craftsman buys verifiable homes that have compositional worth. However, they are in poor condition. She sets them up, increasing the value of every property to sell at a more significant expense. The individuals who purchase from her success since they get an improved property


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