Nonzero-Sum Game Essay

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Question 5:
Respond to the charge that immigrants flood the labor market and drive down wages in the U.S.
Immigration within the labor market challenges the payoff for skilled Americans as well as unskilled Americans which is considered the zero-sum game and nonzero-sum game based upon the vantage point of the wages. The vantage point is whether the wages in the U.S. decrease or increase within the economy due to the emergence of immigration within the labor market. In essence, the collaboration of immigration within the labor market creates a zero-sum game for the players involved. The players would be American workers and immigrants. If immigrants populate the U.S. labor market a competition is created where the gains of one player are at …show more content…

(b) Nonzero-sum game? Provide examples in your discussion.
What is meant by the zero-sum game is when the gains of one player equals the loss of another (Salvatore, 2014, pg. 474). For example, if a firm increases its market share at the expense of another firm by increasing its advertising expenditures, the firm imposed on may not gain any market expenditures, but lose.
In contrast, if the gains or losses of one firm don not come at the expense of the other nor provide equal benefits to the other firm, it is called a nonzero-sum game (Salvatore, 2014, pg. 474). For example, large firms in Las Vegas advertise Casino gaming, whereas smaller firm’s advertisement does not necessary have to be as marketable because of the overcrowded Casino. As a result, the overflows from the large Casinos becomes a nonzero-sum game for the smaller Casino’s (Benston, 2008). Another example, unemployment insurance. The economy is affected when there are no taxes paid by businesses, towards unemployment, therefore if or when a worker is laid off and tries to claim his or her unemployment insurance, none is available. According to the Census Bureau estimates, unemployment insurance keeps 3.2 million Americans from falling below the poverty line in 2010 alone (Perez, 2016). Lastly, the Bible says, Leviticus 19:33–34; "When a foreigner resides among you in your land, do not mistreat them. The foreigner residing among you must be treated as your native-born. Love them

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