variable-sum game
Quick Summary
In variable-sum games each payoff depends on both players' actions. Therefore, each matrix entry lists two payoffs, one for each player.
A variable-sum game, within the field of game theory, describes situations where the total gains and losses of all participants are not zero. Unlike zero-sum games where one player's gain is another's loss, variable-sum games allow for scenarios where all players can benefit, all can lose, or some can gain while others lose.
These games acknowledge that players often have both common and opposing interests. For instance, a buyer and seller engage in a variable-sum game: the buyer desires a low price, the seller a high one, but both benefit from a completed transaction. Similarly, two nations might disagree on many issues but both gain by avoiding war. Communication and cooperation can significantly influence outcomes in variable-sum games, unlike in constant-sum games where such interactions are less impactful.1234
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