Positive-Sum, Negative Sum and Zero-Sum Situations

Positive-Sum, Negative Sum and Zero-Sum Situations

Based on the outcomes of a dispute or negotiation, conflicting situations can also be
classified as zero-sum, positive-sum and negative-sum conflicts.

In a zero-sum situation, it is inevitable that if one party gains some advantage, the
other party suffers a corresponding loss. These situations arise when a “fixed pie” is
to be distributed between two parties. For example, if there is only one job with two
people vying for it, one person will get it and the other person will not. One job won and
one job lost equals zero. The gains and losses add up to zero.

In positive-sum situations, gain for one party does not necessarily mean a corresponding
loss to the other party. There is additional sum available to be distributed
between the contending parties and gain for one person or party by the equivalent
additional sum does not mean a corresponding loss to other contending person or
party. The gains and losses add up to greater than zero.

Negative-sum situations are characterized by a shrinking pie. There are no gains to
be distributed but only losses to be reduced. If the actual loss is less than the expected
loss, the differential is treated as a gain. If a department is expecting a 10% cut in the
budgetary allocation but if the actual cut is only 5%, the gain to the department is 5%.