In PostgreSQL (and other MVCC databases), transactions can rollback due to a deadlock or serialization error. Assume two transactions are currently running, is it ever possible that both, instead of just one, transaction will fail due to this kind of errors?
The reason why I am asking is that I am writing a retry implementation. If both transactions can fail, we might end up in a never-ending loop of retries if both retry immediately. If only one transaction can fail, I don't see any harm in retrying as soon as possible.
Yes. A deadlock can involve more than two transactions. In this case more than one may be terminated. But this is an extremely rare condition. Normally.
If just two transactions deadlock, one survives. The manual:
PostgreSQL automatically detects deadlock situations and resolves them by aborting one of the transactions involved, allowing the other(s) to complete.
Serialization failures only happen in REPEATABLE READ or SERIALIZABLE transaction isolation. I wouldn't know of any particular limit to how many serialization failures can happen concurrently. But I also never heard of any necessity to delay retrying.
I would retry as soon as possible either way.