Module – DB 5
BUSI620: Module 5 – Discussion Board 5
Katrina Deloach
Liberty University
Dr. Kimberly Johnson
July 20, 2014
1
Module – DB 52
Question 3
What is meant by (a) Zero-sum game? (b) Nonzero-sum game? Provide examples. Game
theories such as zero-sum and nonzero-sum games, pioneered in 1944 by mathematician Neumann
and economist Morgenstern used in oligopoly (Salvatore, 2012, p. 460) situations are opposites to
say the least. A zero-sum game is “when the players have diametrically opposed interests” (Zagare
& Slantchev, 2010, p. 2), whereas, in a nonzero-sum game, “the players have both competitive and
complementary motives” (p. 2). Examples of a zero-sum game occur if a company increases their
market share at the expense of another company by increasing advertising costs “in the face of
unchanged advertising” (Salvatore, 2012, p. 460) by the other company. An example of a nonzero-
sum game is when “increased advertising leads to higher profits of both firms” (p. 460) which can
be either a positive or negative sum.
Question 5
Respond to the charge that immigrants flood the labor market and drive down wages in
the United States. This question for the writer presented thoughts in terms of what the bible teaches
us in Leviticus 19:33 (KJV) about “foreigners” which states, “and if a stranger sojourn with thee in
your land, ye shall not vex him” (Leviticus 19). With that said, and some major research on the
topic, the writer does not believe that immigrants flooding the market are driving down U.S. wages.
Kotkin (2012) explained that the United States needs immigrants but must have a strategy to getting
the right ones. “Rather than an issue of “values” or political sentiment, we need to look at
immigration as a matter of arbitrage, a process by which rapidly aging countries bid for the skills
and energies of newcomers to keep their economies afloat” (Para. 3). Based on this information,
the writer stands firm in disagreeing with this statement. If anything, the writer believes that there
are many American businesses that can benefit from the different skills that immigrants will bring
to the table because, “almost everywhere in the world, there are shortages of skills ranging from
construction to advanced engineering” (Kotkin, 2012, Para. 8). America’s approach to this issue has
been baffling considering the shortage of skills that exist across the board. Employing immigrants
Module – DB 53 and training them accordingly can, if anything, provide the U.S.
economy with a boost as long as
wages are payable based on experiences and skills, and not that of the nationality of a
person.
Module – DB 54
References
Kotkin, J. (2012, June 26). U.S. Desperately Needs Immigrants And A Strategy To Get The
Right Ones. Forbes. Retrieved July 20, 2014, from
http://www.forbes.com/sites/joelkotkin/2012/06/26/u-s-desperately-needs-immigrants
and-a-strategy-to-get-the-right-ones/
Leviticus 19 (King James Version). Retrieved fromhttp://www.blueletterbible.org/Bible.cfm?
b=Lev&c=19&p=0&rl=0&ss=0&t=KJV
Salvatore, D. (2012). Managerial economics in a global economy (7th ed.). Oxford: Oxford
University Press.
Zagare, F. C., & Slantchev, B. L. (2010). Game Theory and Other Modeling Approaches. The
International Studies Encyclopedia, 2591-2610.
