Episode 16: Zero Sum Games

What does that mean? Think about any sports contest. Whether it is baseball,football, or any other competition, there is only one winner. Second place isonly the first loser. But financial success is not like that. Think about AppleComputer, the most valuable company in the world as I am writing this. Oneof the reasons that Apple is so successful is that it has created platforms forapps on which independent developers can produce and distribute apps thatcan make their creators very wealthy very fast.But consider this: everytime one of those app developers creates a successfulapp, Apple computer gets richer. But this is the important distinction. Appledoes not get rich by making the app producer poorer. It gets rich by makingthe app producer richer. This is the exact opposite of a zero sum game. It is agame in which success by one party increases the success and wealth of theother. That is how business in a free society works at its best.