It is a common convention in RPGs that characters get (preferably awesome) abilities, and that having these abilities makes them better at stuff. Having the ability to sneak attack or turn invisible or teleport is objectively better than not having that ability. And generally speaking, the value of an ability is based on two things: how inherently awesome it is, and how often it helps you.
Another common convention in RPGs is that characters have a limit to the number of actions they can take, and some abilities require an action to invoke. The fact that you are stabbing some guy in the face right now also means that you are not hurling a fireball, throwing the dwarf across the room, or opening a portal to hell at the same time. Thus, an ability used in this way carries an opportunity cost: the fact that you used ability X means that you can't also use ability Y (until next round). Having both abilities X and Y is still (hopefully) more awesome than either one by itself, because it means you get to choose which one you want to use, but if there's any overlap in the situations where they're useful, then picking up Y means you won't benefit from X as often as before, and so their combined value is less than the sum of their individual values. In general,
Abilities that have to be used in this way are often called "active" abilities, in contrast to "passive" abilities that work just because you have them. In general, the more active abilities you have, the less often you're going to use each one, and therefore the less benefit you get from each one.
The trait I want to call attention to here is that these abilities are "exclusive" in the sense that you can't get the maximum benefit from both at once. Getting lots of exclusive abilities is therefore less valuable than getting lots of nonexclusive abilities, all else being equal.
At this point I should point out that "active" and "exclusive" are not the same thing. You can have actively used, non-exclusive abilities, if the ability uses an action that other abilities aren't competing for, such as when it uses an action type you wouldn't otherwise use, or when you use it before the time pressure starts and its effects linger (and hence buffs let you break the game). You can also have passive exclusive abilities, if for example you have to choose one of several to activate when the conditions are met, or if you have to choose which ability's conditions you fulfill (e.g. weapon focus), or if they consume some other limited resource (MP), etc.
You can also have several groups of abilities using different types of resources (actions, MP, etc.) so that abilities within a group compete with each other, but don't compete with another group.
So why do we care? Well, as noted, RPGs like to hand out various kinds of abilities to characters, and they generally hand out more as you advance, and allow players some modicrum of control over the abilities they receive. And under this model, exclusive and nonexclusive abilities cannot be balanced against each other. This follows from the simple observation that receiving an exclusive ability reduces the value of all your other exclusive abilities and receiving a nonexclusive ability does not, which means that if your abilities are otherwise balanced, there is an optimal number of exclusive abilities for you to take, and every ability past that number must be a nonexclusive ability or you are hurting yourself.
How to solve this issue? Several options:
- Every ability is nonexclusive. Even if some abilities use a resource (e.g. actions, MP) that others do not, you can potentially eliminate any meaningful competition by making sure that players always have more of those resources than can be used only by abilities (e.g. if special attacks are usable once per day and you can't get as many special attacks as the total number of attacks you'll make during a day, then the number of actions you can take isn't a meaningful limit on the usefulness of special attacks).
- Every ability competes with every other. Even if some abilities use a resource (e.g. actions, MP) that others do not, you can potentially eliminate any asymmetric competition if there's a single resource that they all use and that is more scarce than the others.
- You have both exclusive and nonexclusive abilities, but they're not interchangable; you pay for them out of separate pools, and foregoing abilities of one type does not let you pick any more of the other.
- You have several groups of abilities, and every ability competes within its group, but not with other groups. (An easy way to turn a nonexclusive group into an exclusive group is to limit the number of abilities you can have "turned on" at one time.) Picking an ability reduces the benefit you get from every ability in that group, but not the benefit of other groups. At any given time, one group will have the highest payoff, but if you keep picking abilities from that group, the payoff will drop until another group is a better choice, and so if you receive enough (vaguely balanced) abilities, you'll eventually want to get abilities from every group, and you'll continue to pick from all groups as you get more.
- Every exclusive ability comes paired with some special effect that scales in precisely the same way as the ability, and cancels the drawback of picking lots of competing abilities. For example, maybe learning more spells increases your total MP, so while you have more spells competing for it, you also have a larger pool to spread around (adrenal skills in Guild Wars basically work this way). Alternately, maybe knowing a single spell comes with some terrible penalty, but every spell you learn beyond the first reduces this penalty in some proportion that coincidentally cancels out the competitive effect of lots of spells sharing a single mana pool.
- Every ability is worth precisely zero, so none of them are balance considerations in the first place. (The degenerate solution.)