Funny Math

8/10/2007 – 12:23 am

Here are two terms I’ve always had trouble with - and I think the reason is similar but I can’t figure it out.

Zero Sum Game… shouldn’t that be zero difference game? I mean, I understand that if there is a simple situation where you and I both have a dollar, and I take the dollar away from you and now I have two, that I gained 1, plus your negative 1, equals zero… but seriously. I think 1 - 1 = 0 is much easier to understand than 1 + (-1) = 0.

Accountants follow the same line of thinking with assets = liability + owner’s equity. That just seems designed to be confusing. If you just shook it around a little bit and said owners equity = assets - liabilities. I think that’s much easier to understand. What you’ve really got (equity) is the value of all your shit (assets) less what you owe (liability)… that’s just common sense.

  1. 2 Responses to “Funny Math”

  2. I thought it was zero sum gain..

    that makes a bit more sense doenst it?

    By Tom on Aug 30, 2007

  3. Nope, it’s zero sum game.

    http://en.wikipedia.org/wiki/Zero_sum_game

    It’s from game theory. Besides, if the sum is zero there can never be a gain. That would be kinda like an oxymoron.

    By Ryan on Aug 30, 2007

Sorry, comments for this entry are closed at this time.