The moderating effect of zero-sum game theory on interest rates and commercial banks profitability
Zero sum is a situation in game theory in which one person’s gain is equivalent to another’s loss, so the net change in wealth or benefit is zero. There are two types of interest rates charged by banks; one is on borrowers loans and the other is on customers savings. It is expected that the two interest rates should be treated equally since both are benefits to the receivers and in conformity with the zero sum theory. However, this seemed not to have been the case.