Why is big-Oh multiplicative?

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If $f$ is $O(g)$ over some base, this means that $f(x) = \beta(x)g(x)$, where $\beta$ is eventually bounded. So this means that eventually, $f$ is at most $c$ times $g$, where $c$ is some constant.

But I thought $O$ was a way of expressing that two functions are eventually approximately the same. In that case, this seems like a poor definition. If $g$ is unbounded, then the difference between $f$ and $g$ is also unbounded, so the two functions might be $O$ of one another and yet still diverge wildly.

I would have used an additive definition: $f(x)=g(x)+\beta(x)$, where $\beta$ is eventually bounded. So then we know that $f(x)=g(x)\pm \epsilon$, where $\epsilon$ is some positive constant. We now have a statement on the error incurred by assuming $f=g$.

Similar objections can be raised against the definition of asymptotic equivalence. $x^2\sim x^2+x$ as $x\rightarrow+\infty$ even though their difference grows without bound. So in what sense are they equivalent?

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To appreciate these comparisons we have to look at some actual numbers. Let's take the case of $x^2+x$ vs. $x^2$. Let's suppose a calculation takes a millisecond and we have one algorithm $A_1$ that takes $x^2$ calculations to complete a task and another algorithm $A_2$ that takes $x^2+x$ calculations to complete the same task where $x$ is the problem size.

If $x=1,000,000$ then $A_1$ takes $10^{12}$ milliseconds which is $10^9$ seconds which is about $31.7$ years. $A_2$ takes $10^{12} + 10^6$ milliseconds which is $10^9 + 10^3$ seconds and since $10^3$ seconds is $16$ minutes and $40$ seconds $A_2$ takes about $31.7$ years and an additional $17$ minutes. Is that significant?

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$f=O(g)$ expresses that eventually $f \ll g$, not that they are eventually approximately the same.

As far as equivalence itself, which is denoted $f=\Theta(g)$, we want to denote equivalence up to a constant factor in input size, because you want to talk about orders. In other words, $x^2 \ll 5x^2$, but the difference is not that of an order, i.e. $\dfrac{x^2}{5x^2}$ would converge to $5$, not to $0$, which is what you want to capture by this definition.

I guess to make it explicit with your example. $x^2$ and $x^2+x$ are equivalent in the sense that

$$ \lim_{x \to \infty} \frac{x^2}{x^2+x} = 1 \in \mathbb{R}^+, $$

importantly, not in $\{0,\infty\}$. That classifies them of the same order...