HOME

TheInfoList




Competition is a
rivalry A rivalry is the state of two people or groups engaging in a lasting competitive relationship. Rivalry is the "against each other" spirit between two competing sides. The relationship itself may also be called "a rivalry", and each participant or ...

rivalry
where two or more parties strive for a common
goal A goal is an idea of the future or desired result that a person or a group of people envision, Planning, plan and commit to achieve. People endeavour to reach goals within a finite time by setting Time limit, deadlines. A goal is roughly simi ...

goal
which cannot be shared: where one's gain is the other's loss (an example of which is a
zero-sum game Zero-sum game is a mathematical representation in game theory Game theory is the study of mathematical models of strategic interactions among Rational agent, rational agents.Roger B. Myerson, Myerson, Roger B. (1991). ''Game Theory: Analysis ...
). Competition can arise between entities such as organisms, individuals, economic and social groups, etc. The rivalry can be over attainment of any exclusive goal, including
recognition Recognition may refer to: *Award, something given in recognition of an achievement In science and technology In computer science *Pattern recognition, a branch of machine learning which encompasses the meanings below Biometric *Recognition of h ...
: (e.g.
award An award, sometimes called a distinction, is something given to a recipient as a token of recognition of excellence in a certain field. When the token is a medal, ribbon or other item designed for wearing, it is known as a decoration. An award ...

award
s, goods, mates, status, prestige),
leadership Leadership, both as a research area and as a practical skill, encompasses the ability of an individual, group or organization An organization, or organisation (English in the Commonwealth of Nations, Commonwealth English; American and B ...

leadership
,
market share Market share is the percentage of the total revenue or sales in a market Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland and Swe ...
, niches and scarce
resource Resource refers to all the materials available in our environment which help us to satisfy our needs and wants. Resources can broadly be classified upon their availability — they are classified into renewable File:Global Vegetation.jpg, Global ...

resource
s, or a
territory A territory is an administrative division Administrative division, administrative unitArticle 3(1). , country subdivision, administrative region, subnational entity, first-level subdivision, as well as many similar terms, are generic names ...
. Competition occurs in nature, between living organisms which co-exist in the same
environment Environment most often refers to: __NOTOC__ * Natural environment, all living and non-living things occurring naturally * Biophysical environment, the physical and biological factors along with their chemical interactions that affect an organism or ...

environment
. Animals compete over water supplies, food, mates, and other
biological resourcesIn biology and ecology, a resource is a substance or object in the environment required by an organism for normal Developmental biology, growth, Maintenance of an organism, maintenance, and reproduction. Resources can be consumed by one organism and, ...
.
Human Humans (''Homo sapiens'') are the most abundant and widespread species In biology Biology is the natural science that studies life and living organisms, including their anatomy, physical structure, Biochemistry, chemical processes ...

Human
s usually compete for food and mates, though when these needs are met deep rivalries often arise over the pursuit of
wealth Wealth is the abundance of valuable financial asset A financial asset is a non-physical asset whose value is derived from a contractual claim, such as deposit (finance), bank deposits, bond (finance), bonds, and participations in companies' sh ...

wealth
, power, prestige, and
fame Fame is the quality of being well-known and in the public eye. Celebrities are famous by definition. Fame may also refer to: Places in the United States * Fame, Mississippi * Fame, West Virginia Books * ''Fame: an art project'', a 2013 book and s ...
when in a static, repetitive, or unchanging environment. Competition is a major tenet of
market economies A market economy is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource allocation and Distribution (economics), distribution of goods and services wit ...
and business, often associated with business competition as companies are in competition with at least one other firm over the same group of customers. Competition inside a company is usually stimulated with the larger purpose of meeting and reaching higher quality of services or improved products that the company may produce or develop. Competition is often considered to be the opposite of
cooperation Cooperation (written as co-operation in British English British English (BrE) is the standard dialect A standard language (also standard variety, standard dialect, and standard) is a language variety that has undergone substantial ...

cooperation
, however in the real world, mixtures of cooperation and competition are the norm. In economies, as the philosopher R. G. Collingwood argued "the presence of these two opposites together is essential to an economic system. The parties to an economic action co-operate in competing, like two chess players". Optimal strategies to achieve goals are studied in the branch of mathematics known as
game theory Game theory is the study of mathematical model A mathematical model is a description of a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. ...
. Competition has been studied in several fields, including
psychology Psychology is the scientific Science () is a systematic enterprise that builds and organizes knowledge Knowledge is a familiarity or awareness, of someone or something, such as facts A fact is an occurrence in the real world. ...

psychology
,
sociology Sociology is a social science Social science is the branch The branches and leaves of a tree. A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the scie ...
and
anthropology Anthropology is the scientific study of human Humans (''Homo sapiens'') are the most abundant and widespread species In biology Biology is the natural science that studies life and living organisms, including their anatomy, ...
. Social
psychologist A psychologist is a professional A professional is a member of a profession or any person who earns a living from a specified professional activity. The term also describes the standards of education and training that prepare members of the p ...
s, for instance, study the nature of competition. They investigate the natural urge of competition and its circumstances. They also study
group dynamics Group dynamics is a system of behaviors and psychological processes occurring within a social group In the social sciences, a social group can be defined as two or more people who interact with one another, share similar characteristics, and co ...
, to detect how competition emerges and what its effects are. Sociologists, meanwhile, study the effects of competition on society as a whole. Additionally,
anthropologistAn anthropologist is a person engaged in the practice of anthropology. Anthropology is the study of aspects of humans within past and present Society, societies. Social anthropology, cultural anthropology and philosophical anthropology study the norm ...

anthropologist
s study the
history History (from Greek#REDIRECT Greek Greek may refer to: Greece Anything of, from, or related to Greece Greece ( el, Ελλάδα, , ), officially the Hellenic Republic, is a country located in Southeast Europe. Its population is approxima ...

history
and prehistory of competition in various cultures. They also investigate how competition manifested itself in various
cultural Culture () is an umbrella term which encompasses the social behavior Social behavior is behavior among two or more organisms within the same species, and encompasses any behavior in which one member affects the other. This is due to an int ...

cultural
settings in the past, and how competition has developed over time.


Biology and ecology

Competition within, between, and among species is one of the most important forces in biology, especially in the field of
ecology Ecology (from el, οἶκος, "house" and el, -λογία, label=none, "study of") is the study of the relationships between living organisms, including humans, and their physical environment. Ecology considers organisms In biol ...
.Keddy, P.A. 2001. ''Competition'', 2nd ed., Kluwer, Dordrecht. 552 p. Competition between members of a species ("intraspecific") for resources such as
food Food is any substance consumed to provide Nutrient, nutritional support for an organism. Food is usually of plant, animal or Fungus, fungal origin, and contains essential nutrients, such as carbohydrates, fats, protein (nutrient), proteins, vi ...

food
,
water Water (chemical formula H2O) is an , transparent, tasteless, odorless, and , which is the main constituent of 's and the s of all known living organisms (in which it acts as a ). It is vital for all known forms of , even though it provide ...

water
,
territory A territory is an administrative division Administrative division, administrative unitArticle 3(1). , country subdivision, administrative region, subnational entity, first-level subdivision, as well as many similar terms, are generic names ...
, and
sunlight Sunlight is a portion of the given off by the , in particular , , and light. On , sunlight is and through , and is obvious as when the Sun is above the . When direct is not blocked by s, it is experienced as sunshine, a combination of b ...

sunlight
may result in an increase in the frequency of a variant of the species best suited for survival and reproduction until its fixation within a population. However, competition among resources also has a strong tendency for diversification between members of the same species, resulting in coexistence of competitive and non-competitive strategies or cycles between low and high competitiveness. Third parties within a species often favour highly competitive strategies leading to species extinction when environmental conditions are harsh ( evolutionary suicide). Competition is also present between species ("interspecific"). When resources are limited, several species may depend on these resources. Thus, each of the species competes with the others to gain access to the resources. As a result, species less suited to compete for the resources may
die out
die out
unless they
adapt
adapt
by character dislocation, for instance. According to
evolutionary theory Evolutionary thought, the recognition that species change over time and the perceived understanding of how such processes work, has roots in antiquity—in the ideas of the Ancient Greece, ancient Greeks, Ancient Rome, Romans, and History of Ch ...
, this competition within and between species for resources plays a significant role in
natural selection Natural selection is the differential survival and reproduction of individuals due to differences in phenotype right , Here the relation between genotype and phenotype is illustrated, using a Punnett square, for the character of peta ...
. At shorter time scales, competition is also one of the most important factors controlling diversity in ecological communities, but at larger scales expansion and contraction of ecological space is a much more larger factor than competition. This is illustrated by living plant communities where asymmetric competition and competitive dominance frequently occur. Multiple examples of symmetric and asymmetric competition also exist for animals.


Consumer competitions - games of luck or skill

In Australia, New Zealand and the United Kingdom, competitions or lotto are the equivalent of what are commonly known as
sweepstakes A sweepstake is a type of contest where a prize or prizes may be awarded to a winner or winners. Sweepstakes began as a form of lottery that were tied to products sold. In response, the FCC The Federal Communications Commission (FCC) is an i ...

sweepstakes
in the United States. The correct technical name for Australian consumer competitions is a trade promotion lottery or lotto. Competition or trade promotion lottery entrants enter to win a prize or prizes, hence many entrants are all in competition, or competing for a limited number of prizes. A trade promotion lottery or competition is a free entry lottery run to promote goods or services supplied by a business. An example is where you purchase goods or services and then given the chance to enter into the lottery and possibly win a prize. A trade promotion lottery can be called a lotto, competition, contest, sweepstake, or giveaway. Such competitions can be games of luck (randomly drawn) or skill (judged on an entry question or submission), or possibly a combination of both. People that enjoy entering competitions are known as compers. Many compers attend annual national conventions. In 2012 over 100 members of the online competitions community of lottos.com.au from around Australia met on the Gold Coast, Queensland to discuss competitions.


Competitiveness

Many
philosopher A philosopher is someone who practices philosophy Philosophy (from , ) is the study of general and fundamental questions, such as those about Metaphysics, existence, reason, Epistemology, knowledge, Ethics, values, Philosophy of mind, mi ...

philosopher
s and
psychologist A psychologist is a professional A professional is a member of a profession or any person who earns a living from a specified professional activity. The term also describes the standards of education and training that prepare members of the p ...
s have identified a trait in most living organisms which can drive the particular organism to compete. This trait, called competitiveness, is viewed as an innate
biological Biology is the natural science Natural science is a branch of science Science (from the Latin word ''scientia'', meaning "knowledge") is a systematic enterprise that Scientific method, builds and Taxonomy (general), organizes knowl ...

biological
trait Trait may refer to: * Phenotypic trait in biology, which involve genes and characteristics of organisms * Trait (computer programming), a model for structuring object-oriented programs (a template class in the C++ programming language) * Trait the ...
which coexists along with the urge for survival. Competitiveness, or the inclination to compete, though, has become synonymous with aggressiveness and ambition in the
English language English is a West Germanic language of the Indo-European language family The Indo-European languages are a language family A language is a structured system of communication used by humans, including speech ( spoken language), g ...

English language
. More advanced
civilization  A civilization (or civilisation) is a complex society A complex society is a concept that is shared by a range of disciplines including anthropology, archaeology, history and sociology to describe a stage of social formation. The concep ...

civilization
s integrate aggressiveness and competitiveness into their interactions, as a way to distribute resources and adapt. Many plants compete with neighboring ones for sunlight. The term also applies to
econometrics Econometrics is the application of Statistics, statistical methods to economic data in order to give Empirical evidence, empirical content to economic relationships.M. Hashem Pesaran (1987). "Econometrics," ''The New Palgrave: A Dictionary of Econ ...

econometrics
. Here, it is a comparative measure of the ability and performance of a firm or sub-sector to sell and produce/supply goods and/or services in a given market. The two academic bodies of thought on the assessment of competitiveness are the Structure Conduct Performance Paradigm and the more contemporary New Empirical Industrial Organisation model. Predicting changes in the competitiveness of business sectors is becoming an integral and explicit step in public policymaking. Within capitalist economic systems, the drive of enterprises is to maintain and improve their own competitiveness.


Education

Competition is a major factor in education. On a global scale, national education systems, intending to bring out the best in the next generation, encourage competitiveness among students through
scholarships A scholarship is an award of financial aid Student financial aid in the United States is funding that is available exclusively to students attending a Higher education in the United States, post-secondary educational institution in the United ...
. Countries such as England and Singapore have
special education Special education (known as special-needs education, aided education, exceptional education, exceptional student education, special ed., SEN, or SPED) is the practice of educating students in a way that provides accommodations that address thei ...

special education
programmes which cater for specialist students, prompting charges of academic elitism. Upon receipt of their academic results, students tend to compare their grades to see who is better. In severe cases, the pressure to perform in some countries is so high that it can result in stigmatization of intellectually deficient students, or even suicide as a consequence of failing the exams; Japan being a prime example (see
Education in Japan Education in Japan is Compulsory education, compulsory at the elementary and lower secondary levels. Most students attend public schools through the lower secondary level, but private education is popular at the upper secondary and university lev ...
). This has resulted in critical re-evaluation of examinations as a whole by educationalists . Critics of competition as a motivating factor in education systems, such as
Alfie Kohn Alfie Kohn (born October 15, 1957) is an American author and lecturer in the areas of education, parenting, and human behavior Human behavior is the potential and expressed capacity (Energy (psychological), mentally, Physical activity, phy ...

Alfie Kohn
, assert that competition actually has a net negative influence on the achievement levels of students, and that it "turns all of us into losers" (Kohn 1986). Economist
Richard Layard Peter Richard Grenville Layard, Baron Layard FBA (born 15 March 1934) is a British labour economist, currently working as programme director of the Centre for Economic Performance at the London School of Economics. Layard was Senior Research O ...

Richard Layard
has commented on the harmful effects, stating "people feel that they are under a great deal of pressure. They feel that their main objective in life is to do better than other people. That is certainly what young people are being taught in school every day. And it's not a good basis for a society." However, other studies such as the Torrance Tests of Creative Thinking show that the effect of competition on students depends on each individual's level of
agency Agency may refer to: * a governmental or other institution Institutions, according to Samuel P. Huntington, are "stable, valued, recurring patterns of behavior". Institutions can refer to mechanisms which govern the behavior Behavior (Am ...
. Students with a high level of agency thrive on competition, are self-motivated, and are willing to risk failure. Compared to their counterparts who are low in agency, these students are more likely to be flexible, adaptable and creative as adults.


Economics

Merriam-Webster gives as one definition of competition (relating to
business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a business name A trad ...
) as " ..rivalry: such as ..the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms".
Adam Smith Adam Smith ( 1723 – 17 July 1790) was a Scottish economist, philosopher as well as a moral philosopher Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and ...

Adam Smith
in his 1776 book ''
The Wealth of Nations ''An Inquiry into the Nature and Causes of the Wealth of Nations'', generally referred to by its shortened title ''The Wealth of Nations'', is the ''magnum opus 's ''The Creation of Adam'' (c. 1512), part of the Sistine Chapel ceiling The ...

The Wealth of Nations
'' and later economists described competition in general as allocating productive
resource Resource refers to all the materials available in our environment which help us to satisfy our needs and wants. Resources can broadly be classified upon their availability — they are classified into renewable File:Global Vegetation.jpg, Global ...

resource
s to their most highly valued uses and encouraging
efficiency Efficiency is the (often measurable) ability to avoid wasting materials, energy, efforts, money, and time in doing something or in producing a desired result. In a more general sense, it is the ability to do things well, successfully, and withou ...
. Later
microeconomic theory Microeconomics (from Greek prefix ''mikro-'' meaning "small" + ''economics'') is a branch of economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), producti ...
distinguished between
perfect competition In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
and
imperfect competitionIn economics, imperfect competition refers to a situation where the characteristics of an economic market do not fulfil all the necessary conditions of a perfectly competitive market, resulting in market failure. The structure of a market can sign ...
, concluding that no system of resource allocation is more efficient than
perfect competition In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
. Competition, according to the theory, causes commercial firms to develop new products, services and technologies, which would give consumers greater selection and better products. The greater selection typically causes lower prices for the products, compared to what the price would be if there was no competition (
monopoly A monopoly (from Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none) is as described by Irving Fisher, a market with the "absence of competition", creating a situation where a specific ...

monopoly
) or little competition (
oligopoly An oligopoly (from Greek Greek may refer to: Greece Anything of, from, or related to Greece Greece ( el, Ελλάδα, , ), officially the Hellenic Republic, is a country located in Southeast Europe. Its population is approximately 10.7 mi ...
). However, competition may also lead to wasted (duplicated) effort and to increased
cost In production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products (goods and services) * Production ...

cost
s (and prices) in some circumstances. For example, the intense competition for the small number of leads many aspiring musicians and actors to make substantial investments in training which are not recouped, because only a fraction become successful. Critics have also argued that competition can be destabilizing, particularly competition between certain financial institutions. Experts have also questioned the constructiveness of competition in profitability. It has been argued that competition-oriented objectives are counterproductive to raising revenues and profitability because they limit the options of strategies for firms as well as their ability to offer innovative responses to changes in the market. In addition, the strong desire to defeat rival firms with competitive prices has the strong possibility of causing
price war Price war is "commercial competition characterized by the repeated cutting of prices below those of competitors". One competitor will lower its price, then others will lower their prices to match. If one of them reduces their price again, a new ro ...
s. Another distinction appearing in economics is that between competition as an end-state – as in the case of both perfect and imperfect competition – and competition as a ''process.'' That process is typically seen as a process. It is a process of rivalry between firms (or consumers) intensifying selective pressures for improvements. One can restate this as a process of discovery. Three levels of end-state economic competition have been classified: * The most narrow form is direct competition (also called "category competition" or "brand competition"), where
products Product may refer to: Business * Product (business), an item that serves as a solution to a specific consumer problem. * Product (project management), a deliverable or set of deliverables that contribute to a business solution Mathematics * Produc ...
which perform the same function compete against each other. For example, one brand of pick-up trucks competes with several other brands of pick-up trucks. Sometimes, two companies are rivals and one adds new products to their line, which leads to the other company distributing the same new things, and in this manner they compete. * The next form is substitute or indirect competition, where products which are close substitutes for one another compete. For example, butter competes with margarine, with mayonnaise and with other various sauces and spreads. * The broadest form of competition is typically called budget competition. Included in this category is anything on which the
consumer A consumer is a person or a group who intends to order, orders, or uses purchased goods, products, or Service (economics), services primarily for personal, social, family, household and similar needs, not directly related to entrepreneurial or bu ...
might want to spend their available
money In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the left corner">174x174px Money is any item or verifiable record that is generally a ...
. For example, a family which has $20,000 available may choose to spend it on many different items, which can all be seen as competing with each other for the family's expenditure. This form of competition is also sometimes described as a competition of "share of wallet". In addition, companies compete for
financingFunding is the act of providing resources to finance a need, program, or project. While this is usually in the form of money, it can also take the form of effort or time from an organization or company. Generally, this word is used when a firm uses i ...

financing
on the capital markets (equity or debt) in order to generate the necessary cash for their operations.
Investor An investor is a person that allocates capital with the expectation of a future financial return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor purchases some species of property. Types ...
typically consider alternative investment opportunities given their risk profile, and not only look at companies just competing on product (direct competitors). Enlarging the investment universe to include indirect competitors leads to a broader peer universe of comparable, indirectly competing companies. Competition does not necessarily have to be between companies. For example, business writers sometimes refer to internal competition. This is competition within companies. The idea was first introduced by
Alfred Sloan Alfred Pritchard Sloan Jr. (; May 23, 1875February 17, 1966) was an American executive officer, business executive in the automotive industry. He was a long-time President (corporate title), president, chairman and CEO of General Motors, General ...

Alfred Sloan
at
General Motors General Motors Company (GM) is an American multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinat ...
in the 1920s. Sloan deliberately created areas of overlap between
division Division or divider may refer to: Mathematics *Division (mathematics), the inverse of multiplication *Division algorithm, a method for computing the result of mathematical division Military *Division (military), a formation typically consisting o ...
s of the company so that each division would compete with the other divisions. For example, the
Chevrolet Chevrolet ( ), colloquially referred to as Chevy and formally the Chevrolet Division of General Motors Company, is an American automobile division of the American manufacturer General Motors General Motors Company (GM) is an American Mul ...

Chevrolet
division would compete with the Pontiac division for some
market segment In marketing Marketing is the process of intentionally stimulating demand for and purchases of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emphasize in advertising; ...
s. The competing brands by the same company allowed parts to be designed by one division and shared by several divisions, for example parts designed by Chevrolet would also be used by Pontiac. In 1931
Procter & Gamble The Procter & Gamble Company (P&G) is an American multinational consumer goods A final good or consumer good is a final product In Production (economics), production, a final product, or finished product is a product (business), product th ...
initiated a deliberate system of internal brand-versus-brand rivalry. The company was organized around different
brand A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business Business is the activity of making one's living or making mon ...

brand
s, with each brand allocated resources, including a dedicated group of employees willing to champion the brand. Each brand manager was given responsibility for the success or failure of the brand, and compensated accordingly. Most businesses also encourage competition between individual employees. An example of this is a contest between sales representatives. The sales representative with the highest sales (or the best improvement in sales) over a period of time would gain benefits from the employer. This is also known as intra-brand competition. Shalev and Asbjornsen found that success (i.e. the saving resulted) of
reverse auction A reverse auction (also known as buyer-determined auction or procurement auction) is a type of auction An auction is usually a process of buying and selling goods In economics Economics () is the social science that studies how peopl ...
s correlated most closely with competition. The literature widely supported the importance of competition as the primary driver of reverse auctions success. Their findings appear to support that argument, as competition correlated strongly with the reverse auction success, as well as with the number of bidders. Business and economic competition in most
countries A country is a distinct territorial body or political entity A polity is an identifiable political entity—any group of people who have a collective identity, who are organized by some form of Institutionalisation, institutionalized social ...

countries
is often limited or restricted. Competition often is subject to legal restrictions. For example, competition may be legally prohibited, as in the cases of a
government monopoly In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods a ...
or of a
government-granted monopoly In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
. Governments may institute
tariffs A tariff is a tax imposed by a government of a country or of a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of International trade, forei ...
,
subsidies A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. Although commonly extended from the government, the ter ...
or other
protectionist Protectionism is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. Proponents argue that protectionist policies sh ...
measures in order to prevent or reduce competition. Depending on the respective economic policy, pure competition is to a greater or lesser extent regulated by
competition policy Competition law is a law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, ...
and
competition law Competition law is a law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, ...
. Another component of these activities is the discovery process, with instances of higher
government regulation Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context. For ...
s typically leading to less competitive businesses being launched. Nicholas Gruen has referred to ''The Competition Delusion'', in which competition is taken to be unambiguously good, even where that competition leaks into the rules of the game. He claims this drives financialisation (the approximate doubling of proportion of economic resources dedicated to finance and to 'rule making and administering' professions such as law, accountancy and auditing.


Interstate

Competition between countries is quite subtle to detect, but is quite evident in the
world economy The world economy or the global economy is the economy of all humans of the world, referring to the global economic system which includes all economic activities which are conducted both within and between nations, including production (economics ...
. Countries compete to provide the best possible
business Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services). Simply put, it is "any activity or enterprise entered into for profit." Having a business name A trad ...

business
environment for
multinational corporations A multinational company (MNC) is a corporate A corporation is an organization—usually a group of people or a company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Nat ...
. Such competition is evident by the policies undertaken by these countries to educate the future workforce. For example, East Asian economies such as Singapore, Japan and South Korea tend to emphasize education by allocating a large portion of the budget to this sector, and by implementing programmes such as
gifted education Gifted education (also known as gifted and talented education (GATE), talented and gifted programs (TAG), or G/T education) is a broad group of special practices, procedures, and theories used in the education of children who have been identified a ...
.


Law

Competition
law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, is described by its bounda ...
, known in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

United States
as antitrust law, has three main functions: * First, it prohibits agreements aimed to restrict free trading between business entities and their customers. For example, a
cartel A cartel is a group of independent market participants who Collusion, collude with each other in order to improve their profits and dominate the market. Cartels are usually associations in the same sphere of business, and thus an alliance of r ...

cartel
of sports shops who together fix football-jersey prices higher than normal is illegal. * Second, competition law can ban the existence or abusive behaviour of a firm dominating the market. One case in point could be a software company who through its
monopoly A monopoly (from Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none) is as described by Irving Fisher, a market with the "absence of competition", creating a situation where a specific ...

monopoly
on computer platforms makes consumers use its media player. * Third, to preserve competitive markets, the law supervises the
mergers and acquisitions In corporate finance Corporate finance is the area of finance that deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the Value investing, value of the firm to the shareholders, ...
of very large corporations. Competition authorities could for instance require that a large packaging company give plastic bottle
license A license (American English American English (AmE, AE, AmEng, USEng, en-US), sometimes called United States English or U.S. English, is the set of variety (linguistics), varieties of the English language native to the United States. Cur ...

license
s to competitors before taking over a major
PET A pet, or companion animal, is an animal kept primarily for a person's company or entertainment rather than as a working animal, livestock or a laboratory animal. Popular pets are often considered to have attractive appearances, Animal cognitio ...

PET
producer. In all three cases, competition law aims to protect the welfare of consumers by ensuring that each business must compete for its share of the
market economy A market economy is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The ide ...
. In recent decades, competition law has also been sold as good medicine to provide better
public services A public service is a Service (economics), service intended to serve all members of a community. Public services include services provided by a government to people living within its jurisdiction, either directly through public sector agencies o ...
, traditionally funded by
tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law Law is a system A system is a group of Interaction, interacting or interrelated elements that act accord ...
-payers and administered by
democratically Democracy ( gr, δημοκρατία, ''dēmokratiā'', from ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which people, the people have the authority to choose their governing legislators. The decisions on who is consi ...

democratically
accountable
government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Departmen ...

government
s. Hence competition law is closely connected with the law on deregulation of access to markets, providing state aids and subsidies, the
privatisation Privatization (or privatisation in British English British English (BrE) is the standard dialect A standard language (also standard variety, standard dialect, and standard) is a language variety that has undergone substantial codificati ...
of state-owned assets and the use of independent sector regulators, such as the United Kingdom telecommunications watchdog
Ofcom The Office of Communications ( cy, Y Swyddfa Gyfathrebiadau), commonly known as Ofcom, is the government-approved regulatory and competition authority for the broadcasting, telecommunication Telecommunication is the transmission of info ...
. Behind the practice lies the theory, which over the last fifty years has been dominated by
neo-classical economics Neoclassical economics is an approach to economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumpt ...
. Markets are seen as the most efficient method of allocating resources, although sometimes they fail, and regulation becomes necessary to protect the ideal market model. Behind the theory lies the history, reaching back further than the
Roman Empire The Roman Empire ( la, Imperium Rōmānum ; grc-gre, Βασιλεία τῶν Ῥωμαίων, Basileía tôn Rhōmaíōn) was the post-Republican Republican can refer to: Political ideology * An advocate of a republic, a type of governme ...

Roman Empire
. The business practices of market traders,
guilds A guild is an association of s and s who oversee the practice of their craft/trade in a particular area. The earliest types of guild formed as organizations of tradesmen, belonging to: a , a , a , and/or a . They sometimes depended on grants ...
and governments have always been subject to scrutiny and sometimes to severe sanctions. Since the twentieth century, competition law has become global. The two largest, most organised and influential systems of competition regulation are
United States antitrust law In the United States, antitrust law Competition law is a that promotes or seeks to maintain by regulating conduct by companies. Competition law is implemented through public and private enforcement. It is also known as ''anti- law'' in Chi ...
and
European Community competition law European competition law is the competition law in use within the European Union. It promotes the maintenance of competition within the European Single Market by regulating anti-competitive conduct by companies to ensure that they do not create cart ...
. The respective national/international authorities, the U.S. Department of Justice (DOJ) and the
Federal Trade Commission The Federal Trade Commission (FTC) is an Independent agencies of the United States government, independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) U.S. antitrust law and the promot ...

Federal Trade Commission
(FTC) in the United States and the European Commission's Competition Directorate General (DGCOMP) have formed international support- and enforcement-networks. Competition law is growing in importance every day, which warrants for its careful study.


Game theory

Game theory is "the study of
mathematical model A mathematical model is a description of a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environm ...
s of conflict and cooperation between intelligent rational decision-makers." Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs
1
Chapter-preview links, pp
vii–xi
Game theory is mainly used in economics, political science, and
psychology Psychology is the scientific Science () is a systematic enterprise that builds and organizes knowledge Knowledge is a familiarity or awareness, of someone or something, such as facts A fact is an occurrence in the real world. ...

psychology
, as well as logic, computer science, biology and poker. Originally, it mainly addressed
zero-sum game Zero-sum game is a mathematical representation in game theory Game theory is the study of mathematical models of strategic interactions among Rational agent, rational agents.Roger B. Myerson, Myerson, Roger B. (1991). ''Game Theory: Analysis ...
s, in which one person's gains result in losses for the other participants. Game theory is a major method used in mathematical economics and business for Economic model, modeling competing behaviors of interacting Agent (economics), agents. Applications include a wide array of economic phenomena and approaches, such as auctions, bargaining, mergers & acquisitions pricing, fair division, Duopoly, duopolies, Oligopoly, oligopolies, social network formation, agent-based computational economics, general equilibrium, mechanism design, and voting systems; and across such broad areas as experimental economics, Behavioral game theory, behavioral economics, information economics, industrial organization, and political economy. This research usually focuses on particular sets of strategies known as Solution concept, "solution concepts" or "equilibria". A common assumption is that players act rationally. In non-cooperative games, the most famous of these is the Nash equilibrium. A set of strategies is a Nash equilibrium if each represents a best response to the other strategies. If all the players are playing the strategies in a Nash equilibrium, they have no unilateral incentive to deviate, since their strategy is the best they can do given what others are doing.Game-theoretic model to examine the two tradeoffs in the acquisition of information for a careful balancing act
Research paper INSEAD
Options Games: Balancing the trade-off between flexibility and commitment
. Europeanfinancialreview.com (2012-02-15). Retrieved on 2013-01-03.


Literature

Literary competitions, such as contests sponsored by literary journals, publishing houses and theaters, have increasingly become a means for aspiring writers to gain recognition. Awards for fiction include those sponsored by the ''Missouri Review'', ''Boston Review'', ''Indiana Review'', ''North American Review'' and ''Southwest Review''. The Edward Albee, Albee Award, sponsored by the Yale Drama Series, is among the most prestigious playwriting awards.


Philosophy

Margaret Heffernan's study, ''A Bigger Prize'', examines the perils and disadvantages of competition in (for example) biology, families, sport, education, commerce and the Soviet Union.


Marx

Karl Marx insisted that "the capitalist system fosters competition and egoism in all its members and thoroughly undermines all genuine forms of community". It promotes a "climate of competitive egoism and individualism", with competition for jobs and competition between employees; Marx said competition between workers exceeds that demonstrated by company owners. Allen E. Buchanan,
Marx and justice: the radical critique of liberalism
', Taylor & Francis, 1982
He also points out that competition separates individuals from one another and while concentration of workers and development of better communication alleviate this, they are not a decision.


Freud

Sigmund Freud explained competition as a primal dilemma in which all infants find themselves. The infant competes with other family members for the attention and affection of the parent of the opposite sex or the primary caregiving parent. During this time, a boy develops a deep fear that the father (the son's prime rival) will punish him for these feelings of desire for the mother, by castrating him. Girls develop penis envy towards all males. The girl's envy is rooted in the biologic fact that, without a penis, she cannot sexually possess mother, as the infantile id demands, resultantly, the girl redirects her desire for sexual union upon father in competitive rivalry with her mother. This constellation of feelings is known as Oedipus Complex (after the Greek Mythology figure who accidentally killed his father and married his mother). This is associated with the phallic stage of childhood development where intense primal emotions of competitive rivalry with (usually) the parent of the same sex are rampant and create a crisis that must be negotiated successfully for healthy psychological development to proceed. Unresolved Oedipus complex competitiveness issues can lead to lifelong neuroses manifesting in various ways related to an overdetermined relationship to competition.


Mahatma Gandhi

Mahatma Gandhi, Gandhi speaks of egoistic competition. Parmeshwari Dayal
Gandhian Theory of Social Reconstruction
Atlantic Publishers & Dist, 2006
For him, such qualities glorified and/or left unbridled, can lead to violence, conflict, discord and destructiveness. For Gandhi, competition comes from the ego, and therefore society must be based on mutual love, cooperation and sacrifice for the well-being of humanity. In the society desired by Gandhi, each individual will cooperate and serve for the welfare of others and people will share each other's joys, sorrows and achievements as a norm of a social life. For him, in a non-violent society, competition does not have a place and this should become realized with more people making the personal choice to have fewer tendencies toward egoism and selfishness.


Politics

Competition is also found in politics. In democracy, democracies, an election is a competition for an elected office. In other words, two or more candidates strive and compete against one another to attain a position of power. The winner gains the seat of the elected office for a predefined period of time, towards the end of which another election is usually held to determine the next holder of the office. In addition, there is inevitable competition inside a government. Because several offices are appointed, potential candidates compete against the others in order to gain the particular office. Departments may also compete for a limited amount of resources, such as for budget, funding. Finally, where there are party systems, elected leaders of different parties will ultimately compete against the other parties for
law Law is a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of rules to form a unified whole. A system, surrounded and influenced by its environment, is described by its bounda ...
s, funding and political power, power. Finally, competition also exists between
government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Departmen ...

government
s. Each country or nationality struggles for world dominance, power, or military strength. For example, the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

United States
competed against the Soviet Union in the Cold War for world power, and the two also struggled over the different types of government (in these cases representative democracy and communism). The result of this type of competition often leads to worldwide tensions, and may sometimes erupt into warfare.


Sports

While some sports and games (such as fishing or hiking) have been viewed as primarily recreational, most sports are considered competitive. The majority involve competition between two or more persons (sometimes using horse racing, horses or auto racing, cars). For example, in a game of basketball, two teams compete against one another to determine who can score the most points. When there is no set reward for the winning team, many players gain a sense of pride. In addition, extrinsic rewards may also be given. Athletes, besides competing against other humans, also compete against nature in sports such as whitewater kayaking or mountaineering, where the goal is to reach a destination, with only natural barriers impeding the process. A regularly scheduled (for instance annual) competition meant to determine the "best" competitor of that cycle is called a championship. Competitive sports are governed by codified rules agreed upon by the participants. Violating these rules is considered to be unfair competition. Thus, sports provide artificial (not natural) competition; for example, competing for control of a ball, or defending territory on a playing field is not an innate biological factor in humans. Athletes in sports such as gymnastics and competitive Diving (sport), diving compete against each other in order to come closest to a conceptual ideal of a perfect performance, which incorporates measurable criteria and standards which are translated into numerical ratings and scores by appointed judges. Sports competition is generally broken down into three categories: individual sports, such as archery; dual sports, such as tennis, doubles tennis, and team sports competition, such as cricket or football. While most sports competitions are recreation, there exist several Major professional sports leagues in the United States and Canada, major and minor league, minor professional sports leagues throughout the world. The Olympic Games, held every four years, is usually regarded as the international pinnacle of sports competition.


Trade

Competition is also found in trade. For nations, as well as firms it is important to understand trade dynamics in order to market their goods and services effectively in international markets. Balance of trade can be considered a crude, but widely used proxy for international competitiveness across levels: country, Industry (economics), industry or even business, firm. Research data hints that exporting firms have a higher survival rate and achieve greater employment growth compared with non-exporters. Using a simple concept to measure heights that firms can climb may help improve execution of strategies. International competitiveness can be measured on several criteria but few are as flexible and versatile to be applied across levels as Trade Competitiveness Index (TCI)


Hypercompetitiveness

The tendency toward extreme, unhealthy competition has been termed hypercompetitiveness. This concept originated in Karen Horney's theories on neurosis; specifically, the highly aggressive personality type which is characterized as "moving against people". In her view, some people have a need to compete and win at all costs as a means of maintaining their self-esteem, self-worth. These individuals are likely to turn any activity into a competition, and they will feel threatened if they find themselves losing. Researchers have found that men and women who score high on the trait of hypercompetitiveness are more Narcissism, narcissistic and less psychologically healthy than those who score low on the trait. Hypercompetitive individuals generally believe that winning is the only thing that matters.


Consequences

Competition can have both beneficial and detrimental effects. Many evolutionary biologists view inter-species and intra-species competition as the driving force of adaptation, and ultimately of evolution. However, some biologists disagree, citing competition as a driving force only on a small scale, and citing the larger scale drivers of evolution to be abiotic factors (termed 'Room to Roam'). Richard Dawkins prefers to think of evolution in terms of competition between single genes, which have the welfare of the organism 'in mind' only insofar as that welfare furthers their own selfish drives for replication (termed the 'selfish gene'). Some social Darwinists claim that competition also serves as a mechanism for determining the best-suited group; politically, economically and ecologically. Positively, competition may serve as a form of recreation or a challenge provided that it is non-hostile. On the negative side, competition can cause injury and loss to the organisms involved, and drain valuable resources and energy. In the human species competition can be expensive on many levels, not only in lives lost to war, physical injuries, and damaged psychological well-beings, but also in the health effects from everyday civilian life caused by work stress, long work hours, abusive working relationships, and poor working conditions, that detract from the enjoyment of life, even as such competition results in financial gain for the owners.


See also

* Asymmetric competition * Biological interaction * Competition regulator * Competitor analysis * Conflict of interest * Cooperation * Ecological model of competition * Monopolistic competition * Non-zero-sum game * Win-win game * Planned economy * Prisoner's dilemma * Sharing * Student competitions * Zero-profit condition * Zero-sum


References

{{Authority control Competition, Social events