Negative-Sum Game

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A negative-sum game is a situation where the gains and losses of all will add up to less than zero, agents involved in such a dynamic will lose in comparison to what they currently have. This type of situation often creates major competition or conflict. A good example of a negative-sum situation is the distribution of budget cuts within an organization. In this case, each department expects to have some funds taken away with the result being less than zero; negative-sum.