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Positive Sum Relationship |
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Positive Sum RelationshipA positive sum relationship is a relationship between two entities which are, as a sum, better off from the participation of that relationship. This is in contrast to a zero sum relationship, where the outcome of the relationship is a gain for one participant at the direct expense of the other. Examples of positive sum relationships can be found in business transactions (trade in general) and in biology (bumblebee and the flower). Long term positive sum relationships are also known as symbiotic relationships. Zero sum relationships can also been seen in biology (the food chain) and in games, such as chess and checkers. Game Theory tries to predict best decision making outcomes based on the relationships of participants, and the consequence of decisions based on positive sum relationships or zero sum relationships.Similar MatchesRelationship marketingRelationship marketingA long-term approach to marketing that consists of a series of different communications with a potential or existing customer over a period of time. Usually the communications are customized or tailored to the customer based on their purchasing actions (or inaction). International Fisher relationshipInternational Fisher relationshipTheory that nominal interest rates and inflation rates in different countries are connected. The Fisher equation says the nominal interest rate is the product of one plus the real interest rate times one plus the expected rate of inflation. Expected return beta relationshipExpected return beta relationshipImplication of the CAPM that security risk premiums will be proportional to beta. Price volume relationshipPrice volume relationshipA relationship espoused by some technical analysts that signals continuing rises or falls in security prices that are related to changes in volume traded. Put call parity relationshipPut call parity relationshipThe relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities. Holding the underlying stock and buying a put will deliver the exact payoff as buying one call and investing the present value (PV) of the exercise price. The call value equals C = S + P - PV(k). Further SuggestionsInterrelationship DigraphPrincipal agent relationship |
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