World Economy v. Poker??? Zero-Sum????

[squiffy]

According to Fortune magazine interview with Bill Gates and Warren Buffett, both state very emphatically that world economy is NOT a zero sum game.

So can we please stop saying comparing the American economy or the world economy to an artificial closed system poker game with 9 players and 52 cards in a deck.

See Oct. 31, 2005 issue of Fortune at page 84. Maybe someone can find a weblink.

maybe you should get the nobel prize in econ for figuring this out.
There are a few markets such as options where it is a zero sum game though.

[crazy canuck]

There are a few markets such as options where it is a zero sum game though.

In theory these should return the risk free interest rate. In practice they are negative sum becasue of transaction costs.

[Uglyowl]

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So can we please stop saying comparing the American economy or the world economy to an artificial closed system poker game with 9 players and 52 cards in a deck.


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Who on earth said that? The people here are very smart and that is basic knowledge.

[solucky]

in this way poker is a negative game too (rake)

why do you say you should earn the risk free interest rate in options markets?
it seems to me there is an equivalent loss for every gain minus transaction costs.
having participated on a small scale i know of know interest i have gained.

[Sniper]

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in this way poker is a negative game too (rake)

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I have corrected this before... Poker is a zero sum game, because the house counts as part of the system.

[Sniper]

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In theory these should return the risk free interest rate. In practice they are negative sum becasue of transaction costs.

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Canuck, have you been drinking again??? [img]/images/graemlins/confused.gif[/img]

[hedgeyerbets]

http://www.riskglossary.com/link/opt...ing_theory.htm

Risk neutral pricing.

[Sniper]

What does that link have to do with zero sum.