Comparative advantage  

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-In [[game theory]] and [[economic theory]], a '''zero-sum game''' is a [[Mathematical model|mathematical representation]] of a situation in which each participant's gain or loss of [[utility]] is exactly balanced by the losses or gains of the utility of the other participants. If the total gains of the participants are added up and the total losses are subtracted, they will sum to zero. Thus, [[Fair cake-cutting|cutting a cake]], where taking a larger piece reduces the amount of cake available for others, is a zero-sum game if all participants value each unit of cake equally (see [[marginal utility]]). +The '''law''' or '''principle of comparative advantage''' holds that under [[free trade]], an agent will produce more of and consume less of a good for which they have a comparative advantage.
-In contrast, '''non-zero-sum''' describes a situation in which the interacting parties' aggregate gains and losses can be less than or more than zero. A zero-sum game is also called a ''strictly competitive'' game while non-zero-sum games can be either competitive or non-competitive. Zero-sum games are most often solved with the [[minimax theorem]] which is closely related to [[Linear programming#Duality|linear programming duality]], or with [[Nash equilibrium]].+==See also==
- +*[[Keynesian beauty contest]]
-== See also ==+* [[Bureau of Labor Statistics]]
- +* [[Resource curse]]
-* [[Comparative advantage]]+* [[Revealed comparative advantage]]
-* [[Lump of labour fallacy]]+
-* [[Gains from trade]]+
-* [[Free trade]]+
-* [[Bimatrix game]]+
-* [[Zero-sum thinking]]+
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The law or principle of comparative advantage holds that under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.

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