I'm working my way through Surreal Numbers by Knuth, and am finding myself a little hung up on the explanation of how addition works. The rule for addition is given as:
$$ x + y = ((X_L+y)\cup(Y_L+x), (X_R+y)\cup(Y_R+x)) $$
On the next page, one of the protagonists works out $1+1$ to be:
$$ (\{0+1,0+1\},\emptyset) $$ and follows the reasoning on through to prove that $1+1=2$. Where I'm getting a bit lost is that it seems there should be some additions involving $\emptyset$ that are omitted without explanation. If $1$ is defined as $(0,\emptyset)$, then a true following of the addition rule seems like it should be:
$$ 1+1=((0+1)\cup(0+1), (\emptyset+1)\cup(\emptyset+1)) $$ $$ 1+1=(1,1) $$
All of this is obviously wrong, but it's not clear to me why $\emptyset+1$ isn't $1$. I guess the most basic version of my question is: why is $0$ distinct from $\emptyset$ in surreal numbers, and what is the nature of that distinction?
$1$ is not really defined as $(0,\emptyset)$, but as $(\{0\},\emptyset)$. Then $$1+1=\left(\{0+1\}\cup\{0+1\},(\emptyset+1)\cup(\emptyset+1)\right)$$ However, $\emptyset+1$ is empty since there are no surreals in $\emptyset$ to add to $1$ ($\emptyset+1$ is the set of $x+1$ for all $x\in\emptyset$), so $1+1$ simplifies to $$\left(\{0+1\}\cup\{0+1\},\emptyset\cup\emptyset\right)=\left(\{0+1\},\emptyset\right)\text{.}$$
If you know that $0+1$ is $1$, we have $1+1=(\{1\},\emptyset)$.
To answer your other question, $0$ is distinct from $\emptyset$ in the surreals since every surreal is an ordered pair of sets. $0$ is defined to be the ordered pair $(\emptyset,\emptyset)$.