Home
/
RELIGION & LIBERTY ONLINE
/
‘Win-win denial’: The roots of zero-sum thinking
‘Win-win denial’: The roots of zero-sum thinking
Apr 29, 2026 6:32 AM

A new study shows that zero-sum thinking is pervasive across society, with roots in the ways we tend to think about our neighbors and the economy.

Read More…

One of the basic insights of economics is that trade is mutually beneficial, making both parties better off than they were before. It’s a proposition about human exchange that stretches back to Adam Smith’s foundational treatise, “The Wealth of Nations.”

“Man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only,” Smith wrote in 1776. “He will be far more likely to prevail if he can interest their self-love in his favour, and show them that it is for their own advantage to do for him what he requires of them. Whoever offers to another a bargain of any kind, proposes to do this.”

The abounding growth of our global economy underscores this truth, showing how trade turns work into fellowship, as well as fellowship into flourishing. Among economists, there is almost universal agreement on the matter, whether one looks to free-marketers like Milton Friedman or welfare-state liberals like Paul Krugman.

Yet, somehow, a contradictory myth continues to persist and pervade, one which frames economic exchange as a zero-sum game wherein one person’s gain is necessarily another person’s loss. In “The Good Society,” Acton’s educational film series, Michael Miller explains the fallacy as follows:

“One of the mistakes we often make when we think about trade is to view it as a win-lose proposition, instead of mutually beneficial. This is the idea that success can e at the expense of others; for every winner, there must be a loser. This is the fallacy called the “zero-sum game,” where we imagine the economy as a pie, and if one person has a bigger piece, that leaves a smaller piece for someone else.”

“…The problem with the zero-sum game is that it fails to acknowledge the mutual benefit of trade and that the pie can grow. As productivity increases, or as new innovations and inventions take off, the pie can expand. This means that everyone’s share can get bigger, and this is what we call economic growth.”

So, if the evidence of such growth is clear, and if the academic consensus clearly corresponds, why does zero-sum thinking continue to thrive among non-economists?

It’s a question at the center of a new study in which researchers Samuel G.B. Johnson, Jiewen Zhang, and Frank C. Keil explore the psychological roots of what they call “win-win denial.” For whatever reason, zero-sum thinking “appears to be endemic in people’s thinking about economic matters,” the authors write, whether applied to day-to-day transactions at the grocery store or voting choices on matters of public policy.

Drawing from a range of previous research, the authors highlight how far the phenomenon truly reaches, pointing to something persistent in the human psyche:

“Laypeople tend to believe that more panies are less socially responsible, when the true correlation is just the opposite. Negotiators often perceive themselves as carving up a “fixed pie,” decreasing the chances of a successful e. People believe that the government cannot benefit one group without harming another and are particularly inclined to think in zero-sum ways about international trade and immigration.

“But zero-sum thinking also seems to be psychologically natural, occurring across many countries and political orientations, though manifesting differently among liberals and conservatives. Zero-sum thinking has been noted in numerous settings (albeit not always fallaciously), including students’ thinking about grades, reasoners’ thinking about evidence, consumers’ thinking about product features, and even couples’ thinking about love.”

The study is centered around four separate experiments, wherein participants were asked to offer value judgments about specific consumer-driven trades (e.g., “Sally purchasing a shirt from Tony’s store”). In each case, participants were ultimately asked “whether each party to the transaction was better off or worse off afterwards.” The conclusion?

“These studies revealed that win-win denial is pervasive, with buyers consistently seen as less likely to benefit from transactions than sellers,” the authors concluded. “… Overall, the overwhelming majority of participants claimed that at least some of the parties did not benefit from one or more exchanges.”

To understand why, the authors weigh several possibilities, concluding that much of it can be explained by specific psychological mechanisms.

First, it appears as though many people give way to “mercantilist theories of monly confusing wealth for money:

“Across all studies buyers were consistently seen as less likely to benefit from exchange than sellers, and barters were often seen as not benefitting either party. This is consistent with intuitive mercantilism—the idea that a person’s welfare is determined by their monetary wealth, not by mand of useful goods and services. Perceived benefit flows with currency, so that sellers are seen as better-off, buyers as worse-off, and traders as experiencing no change. Despite perennial attempts to conquer mercantilist thinking by economists, this sort of thinking may be so cognitively natural that even extensive economics education does not stamp it out. In our experiments, mercantilist thinking also manifested in a smaller degree of win–win denial when payments were described in terms of time rather than money.”

Second, many tend to project their own personal preferences and notions of value onto others, “failing to observe that people do not arbitrarily enter exchanges”:

“Win–win denial seems to be exacerbated by issues in our theory of mind. Specifically, people are naïve realists, making a perspective-taking error in which they interpret their own preferences as ground truth, neglecting that others have different preferences and reasons for their actions. Merely reminding people that the buyers and traders had reasons for their choices (even empty reasons such as “Mary wanted the chocolate bar”) reduced the incidence of win–win denial… Making the preference of buyers and traders more salient reduced win–win denial, as did asking participants to rate the parties’ perceived gain or loss. Together, these results suggest that people do not spontaneously reflect on the fact that parties to exchanges have reasons for their behavior, leading them to discount potential gains from trade.”

The study considers other possibilities as well (“evolutionary mismatch,” confusion over bargain quality, etc.). But while some of these may play some role, each is ruled out as a root cause. And yet, as the authors conclude, there is still so much left to explore.

For example, how do breakdowns in social trust alter our subconscious beliefs about sellers, businesses, and other economic institutions? Do our suspicions about exploitation or generosity correspond with different seasons of economic crises or prosperity? Does the more recent bureaucratization of big business breed more cynicism about where “value” ultimately resides and who determines what? Or what mon attitudes toward our fellow buyers? mon is it for us to distrust our neighbors’ ability to know their best interests? Do these same findings apply to other areas beyond economic policy? Does a similar zero-sum bias exist at the heart of anti-immigrant sentiment, for example?

This study offers just one introductory glimpse into the roots of such thinking, but in doing so, it reminds us that mon disputes over economic issues are rooted in deeper attitudes about the human person and the basic nature of human relationships in economic life (and beyond). As Acton’s PovertyCure primer states:

“The zero-sum fallacy is rooted in a pessimistic and, often materialistic, view of human beings as consumers. But a view enriched by economic history and theology positions human persons not merely as mouths devouring the Earth’s resources, but as productive gardeners and sub-creators imprinted with God’s divine creative spark.

“While God alone can createex nihilo,Scripture reveals to us with clarity our responsibility to participate in the creative process of cultivating His garden bringing forth from itnewfruits. ‘Be fruitful,’ God says to Adam.”

We need not be experts in economics to resist and counter the win-win denial of our age. Instead, we can embrace and promote a view of creation and human creators that is marked by a faith in abundance, not cynicism and scarcity.

Far from viewing ourselves bative actors in a zero-sum struggle — buyers vs. sellers, employees vs. employers — we can reimagine our work in the global economy as creators and servants, collaborators and contributors, working together with our neighbors to paint a grand picture of God’s abundance and harmony in society.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Kyriarchy and Kuyper
Courtesy Adrian Vermeule at Mirror of Justice, I ran across a word new to me: Kyriarchy. Given the context and my admittedly limited Greek-language skills, I was able to work out the gist of the idea. As Vermeule puts it, “On November 20, the Feast of Christ the King, a coronation ceremony took place at the Church of Divine Mercy in Krakow. The President of Poland and the Catholic Bishops officially crowned Jesus Christ the King of Poland.” Vermeule goes...
Financial deregulation expands opportunity
The Dodd-Frank Act became law in 2010, adding more regulation to a banking industry that was already heavily regulated. The main purpose of this 2,300 page act was to give consumers protection against big profit seeking banks but the unintended consequences prove to be much greater. The regulation was supposed to help the little guy but as Acton Director of Research Samuel Gregg writes at The Stream, it actually hurts the little guy. President-elect Donald Trump claims that he wants...
Are Christians stuck with 3 approaches to cultural engagement?
How are we to be in the world but not of it? How are Christians to live and engage, create and exchange, cultivate and steward our gifts and relationships and resources here on earth? Beyond getting a “free ticket to heaven,” what is our salvation actually for? These questions are at the center of Acton’s film series, For the Life of the World: Letters to the Exiles, whichbeginswith a critique of mon approaches to Christian cultural engagement: fortification (“hide! hunker...
Defending fundamental rights
Life, liberty, and the pursuit of happiness are fundamental rights “asserted in the face of oppression and paid for in blood,” argues Declan Ganley. They “have been the cornerstone not only of American democracy but of western civilization.” In a new article for Prospect Magazine, the chairman & CEO of Rivada Networks says that the West “needs to defend [these] shared values.” He argues that these fundamental rights are now under attack: We live in an age where universal values...
5 Facts about Black Friday
Today is the unofficial first day of the holiday shopping season. Here are five facts you should know about “Black Friday.” 1. The term “Black Friday” was coined by the Philadelphia Police Department’s traffic squad in the 1950s. According to Philadelphia newspaper reporter Joseph P. Barrett, “It was the day that Santa Claus took his chair in the department stores and every kid in the city wanted to see him. It was the first day of the Christmas shopping season.”...
5 Facts about Fidel Castro (1926–2016)
Fidel Castro, the former dictator of Cuba, died this past weekend at the age of 90. Here are five facts you should know about the long-ruling Marxist despot. 1. Castro was baptized a Catholic at the age of 8 and attended several Jesuit-run boarding schools. After graduation in the mid-1940s Castrobegan studying law at the Havana University, where he became politically active in socialist and nationalist causes, in particular opposition to U.S. involvement in the Caribbean. By the end of...
Vouchers: the progressive policy loved by the right and hated by the left
Growing up, I attended a private, Christian school until 4th grade, when my mother couldn’t afford it any more and my brothers and I switched to a blue collar, suburban public school. Academically, I experienced a clear difference. The worst contrast was in math, where I learned basically nothing for three years. The only subject that was probably better at the public school was science, but I’m not even certain about that. Class sizes were larger too. None of this...
Are there economic implications in the Creation story?
“In our search for economic principles in the Bible, we need to begin with the story of Creation found in the first two chapters of Genesis,” says Hugh Whelchel. “Here we see God’s normative intentions for life. We see life as ‘the way it ought to be.’ Man is free from sin, living out his high calling as God’s vice regent in a creation that is ‘very good.’” Whelchel lists three major economic principles laid out in Creation, the first...
Samuel Gregg: Economic nationalism will not make America great
In a new article at The Stream, Acton Director of Research Samuel Gregg offersgood reasons why a move toward economic nationalism is not in the best interest of America. He starts with this: Whatever the motivations for such policies, their costs vastly outweigh their benefits. In the first place, protectionism discourages American businesses and workers from focusing on producing those goods and services where they enjoy parative advantage vis-à-vis other nations. Not only does this undermine productivity, efficiency, and petitiveness...
Who pays the tax?
Note: This is the eleventhpost in a weekly video series on basic microeconomics. Who bears the burden of a tax, the buyer or the seller? Or what about the health insurance mandate in Obamacare—does the employer or the worker pay the tax? In this video, Marginal Revolution University examines these questions and explains why the more elastic side of the market tends to pay a smaller share of a tax. (If you find the pace of the videos too slow,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved