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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 ...
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 ...
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 model, mathematical representation in game theory and economic theory of a situation which involves two sides, where the result is an advantage for one side and an equivalent loss for the other. In other words, pla ...
). 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 Machine learning *Pattern recognition, a branch of machine learning which encompasses the meanings below Biometric *Recognition of human individuals, or biometr ...
: Competition occurs in nature, between living organisms which co-exist in the same environment. Animals compete over water supplies, food, mates, and other biological resources.
Human Humans (''Homo sapiens'') are the most abundant and widespread species of primate, characterized by bipedality, bipedalism and exceptional cognitive skills due to a large and complex Human brain, brain. This has enabled the development of ad ...
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 Value (economics), valuable financial assets or property, physical possessions which can be converted into a form that can be used for financial transaction, transactions. This includes the core meaning as held in the ...
, power, prestige, and fame 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, resource allocation and Distribution (economics), distribution of goods and services within a society or a giv ...
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) is the process of groups of organisms working or acting together for common, mutual, or some underlying benefit, as opposed to working in competition for selfish benefit. Many animal a ...
, 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 models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 Chapter-preview links, ppvii–xi It has appl ...
. Competition has been studied in several fields, including
psychology Psychology is the science, scientific study of mind and behavior. Psychology includes the study of consciousness, conscious and Unconscious mind, unconscious phenomena, including feelings and thoughts. It is an academic discipline of immens ...
,
sociology Sociology is a social science that focuses on society, human social behavior, patterns of Interpersonal ties, social relationships, social interaction, and aspects of culture associated with everyday life. It uses various methods of Empirical ...
and
anthropology Anthropology is the scientific study of humanity, concerned with human behavior, human biology, cultures, societies, and linguistics Linguistics is the scientific study of human language. It is called a scientific study because i ...
. Social
psychologist A psychologist is a professional who practices psychology and studies mental states, perceptual, cognitive, emotional, and social processes and behavior. Their work often involves the experimentation, observation, and interpretation of how indi ...
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 (''intra''group dynamics), or between social groups (Intergroup relations, ''inter''group dynamics). The study of group dynamics can be useful in un ...
, to detect how competition emerges and what its effects are. Sociologists, meanwhile, study the effects of competition on society as a whole. Additionally,
anthropologist An 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 no ...
s study the
history History (derived ) is the systematic study and the documentation of the human activity. The time period of event before the invention of writing systems is considered prehistory. "History" is an umbrella term comprising past events as we ...
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, institutions, and Social norm, norms found in human Society, societies, as well as the knowledge, beliefs, arts, laws, Social norm, customs, capabilities, and habits of the ...
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 () is the study of the relationships between living organisms, including humans, and their biophysical environment, physical environment. Ecology considers organisms at the individual, population, community (ecology), community, ecosy ...
. Competition between members of a species ("intraspecific") for resources such as
food Food is any substance consumed by an organism for nutritional support. Food is usually of plant, animal, or fungal origin, and contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals. The substanc ...
,
water Water (chemical formula ) is an Inorganic compound, inorganic, transparent, tasteless, odorless, and Color of water, nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living ...
,
territory A territory is an area of land, sea, or space, particularly belonging or connected to a country, person, or animal. In international relations, international politics, a territory is usually either the total area from which a state may extr ...
, and
sunlight Sunlight is a portion of the electromagnetic radiation given off by the Sun, in particular infrared, visible spectrum, visible, and ultraviolet light. On Earth, sunlight is light scattering by particles, scattered and attenuation, filtered t ...
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 Evolutionary suicide is an evolutionary phenomenon in which the process of adaptation causes the population to become extinct. For example, individuals might be selected to switch from eating mature plants to seedlings, and thereby deplete their foo ...
). 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 unless they
adapt ADAPT (formerly American Disabled for Attendant Programs Today) is a 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 ...
by character dislocation, for instance. According to
evolutionary theory Evolution is change in the heredity, heritable Phenotypic trait, characteristics of biological populations over successive generations. These characteristics are the Gene expression, expressions of genes, which are passed on from parent to ...
, 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. It is a key mechanism of evolution, the change in the Heredity, heritable Phenotypic trait, traits characteristic of a populati ...
. 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 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 a person who practices or investigates philosophy Philosophy (from , ) is the systematized study of general and fundamental questions, such as those about existence, reason, knowledge, values, mind, and language. Suc ...
s and
psychologist A psychologist is a professional who practices psychology and studies mental states, perceptual, cognitive, emotional, and social processes and behavior. Their work often involves the experimentation, observation, and interpretation of how indi ...
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 scientific study of life. It is a natural science with a broad scope but has several unifying themes that tie it together as a single, coherent field. For instance, all organisms are made up of cells that process hereditary i ...
trait 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 languages, West Germanic language of the Indo-European language family, with its earliest forms spoken by the inhabitants of early medieval England. It is named after the Angles, one of the ancient Germanic people ...
. More advanced
civilization A civilization (or civilisation) is any complex society characterized by the development of a state, social stratification, urbanization Urbanization (or urbanisation) refers to the population shift from Rural area, rural to urban are ...
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 statistical methods to economic data in order to give empirical content to economic relationships. M. Hashem Pesaran (1987). "Econometrics," '' The New Palgrave: A Dictionary of Economics'', v. 2, p. 8 p. ...
. 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 a form of Student financial aid, financial aid awarded to students for further education. Generally, scholarships are awarded based on a set of criteria such as academic merit, Multiculturalism, diversity and inclusion, athleti ...
. Countries such as England and Singapore have
special education Special education (known as special-needs education, aided education, exceptional education, alternative provision, exceptional student education, special ed., SDC, or SPED) is the practice of educating students in a way that accommodates th ...
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 managed by the Ministry of Education, Culture, Sports, Science and Technology (MEXT) of Japan. Education is Compulsory education, compulsory at the Primary education, elementary and Middle school, lower secondary levels. M ...
). 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, ph ...
, assert that competition actually has a net negative influence on the achievement levels of students, and that it "turns all of us into losers". 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 ...
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. 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 practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...
) 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 (baptized 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment. Seen by some as "The Father of Economics"——— ...
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 ''Masterpiece, magnum opus'' of the Scottish people, Scottish economist and moral philosopher Ada ...
'' and later economists described competition in general as allocating productive
resource Resource refers to all the materials available in our environment which are technologically accessible, economically feasible and culturally sustainable and help us to satisfy our needs and wants. Resources can broadly be classified upon thei ...
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 without ...
. Later
microeconomic theory Microeconomics is a branch of mainstream economics that studies the behavior of individuals and Theory of the firm, firms in making decisions regarding the allocation of scarcity, scarce resources and the interactions among these individuals a ...
distinguished between
perfect competition In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In Economic model, theoret ...
and
imperfect competition In 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. Imperfect competition will cause market inefficiency when it happ ...
, concluding that no system of resource allocation is more efficient than
perfect competition In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In Economic model, theoret ...
. 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 language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situati ...
) or little competition (
oligopoly An oligopoly (from Ancient Greek, Greek ὀλίγος, ''oligos'' "few" and πωλεῖν, ''polein'' "to sell") is a market structure in which a market (economics), market or Industry (economics), industry is dominated by a small number of l ...
). However, competition may also lead to wasted (duplicated) effort and to increased
cost In Production (economics), production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one o ...
s (and prices) in some circumstances. For example, the intense competition for the small number of top jobs in music and movie-acting 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 A price is the (usually not negative) quantity of payment or Financial compensation, compensation given by one Party (law), party to another in return for Good (economics), goods or Service (economics), services. In some situations, the pr ...
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 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, or uses purchased goods, products, or Service (economics), services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or bu ...
might want to spend their available
money Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are as ...
. 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
financing Funding 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 us ...
on the capital markets (equity or debt) in order to generate the necessary cash for their operations.
Investor An investor is a person who allocates financial capital with the expectation of a future Return on capital, return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor purchases some specie ...
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 business executive A business executive is a person responsible for running an organization, although the exact nature of the role varies depending on the organizati ...
at
General Motors The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
in the 1920s. Sloan deliberately created areas of overlap between
division Division or divider may refer to: Mathematics *Division (mathematics) Division is one of the four basic operations of arithmetic, the ways that numbers are combined to make new numbers. The other operations are addition, subtraction, and ...
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 Motor Division of General Motors Company, is an Automotive industry in the United States, American automobile division of the American manufacturer General Motors (GM ...
division would compete with the Pontiac division for some
market segment In marketing, market segmentation is the process of dividing a broad consumer or business market (economics), market, normally consisting of existing and potential customers, into sub-groups of consumers (known as ''segments'') based on some typ ...
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 Final good, consumer goods corporation headquartered in Cincinnati, Cincinnati, Ohio, founded in 1837 by William Procter (industrialist), William Procter and James Gamble (industr ...
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 distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create an ...
s, with each brand allocated resources, including a dedicated group of employees willing to champion the brand. Each
brand manager A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business Business is the practice of making one's living or making money by pr ...
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 in which the traditional roles of buyer and seller are reversed. Thus, there is one buyer and many potential sellers. In an ordinary auction al ...
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 part of the world In its most general sense, the term "world" refers to the totality of entities, to the whole of reality or to everything that is. The nature of the world has been conceptualized differently ...
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, a government monopoly or public monopoly is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law. It is a monopoly ...
or of a
government-granted monopoly In economics, a government-granted monopoly (also called a "de jure monopoly" or "regulated monopoly") is a form of coercive monopoly by which a government grants exclusive privilege to a private individual or firm to be the sole provider of a goo ...
. Governments may institute
tariffs A tariff is a tax imposed by the government of a country or by 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, fo ...
,
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, sometimes referred to as trade protectionism, is the economic policy The economy of government A government is the system or group of people governing an organized community, generally a state. In the case ...
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 the field of law Law is a set of rules that are created and are law enforcement, enforceable by social or governmental institutions to regulate behavior,Robertson, ''Crimes against humanity'', 90. with its precise defi ...
and
competition law Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
. Another component of these activities is the discovery process, with instances of higher
government regulation Regulation is the management of complex systems A complex system is a system composed of many components which may interaction, interact with each other. Examples of complex systems are Earth's global climate, organisms, the human brain, infra ...
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 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 practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for pr ...
environment for
multinational corporations A multinational company (MNC), also referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation or a stateless corporation with subtle but contrasting senses, i ...
. 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 compete by allocating a large portion of the budget to the education sector, including 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 set of rules that are created and are law enforcement, enforceable by social or governmental institutions to regulate behavior,Robertson, ''Crimes against humanity'', 90. with its precise definition a matter of longstanding debate. ...
, 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., ...
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 ...
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 language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situati ...
on computer platforms makes consumers use its media player. * Third, to preserve competitive markets, the law supervises the
mergers and acquisitions Mergers and acquisitions (M&A) are business transactions in which the ownership of Company, companies, other business organizations, or their operating units are transferred to or Consolidation (business), consolidated with another company or b ...
of very large corporations. Competition authorities could for instance require that a large packaging company give plastic bottle
license A license (or licence) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another party (licensee) as an element of an agreeme ...
s to competitors before taking over a major
PET A pet, or companion animal, is an animal Animals are multicellular, eukaryotic organisms in the biological kingdom Animalia. With few exceptions, animals consume organic material, breathe oxygen, are able to move, can reproduce s ...
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 in which the decisions regarding investment, Production (economics), production and Distribution (economics), distribution to the consumers are guided by the price signals created by the forces of supply ...
. In recent decades, competition law has also been sold as good medicine to provide better
public services A public service is any Service (economics), service intended to address specific needs pertaining to the aggregate members of a community. Public services are available to people within a government jurisdiction as provided directly through pub ...
, 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 person, legal entity) by a governmental organization in order to fund government spending and various public expenditures (regiona ...
-payers and administered by democratically accountable
government A government is the system or group of people governing an organized community, generally a state. In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. 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 (also privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation when ...
of state-owned assets and the use of independent sector regulators, such as the United Kingdom telecommunications watchdog
Ofcom The Office of Communications, commonly known as Ofcom, is the government-approved regulatory and competition authority for the broadcasting, telecommunications and mail, postal industries of the United Kingdom. Ofcom has wide-ranging powers ...
. 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 in which the production, consumption and valuation (pricing) of goods and services are observed as driven by the supply and demand In microeconomics, supply and demand is an economic m ...
. 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 Romanum ; grc-gre, Βασιλεία τῶν Ῥωμαίων, Basileía tôn Rhōmaíōn) was the post-Roman Republic, Republican period of ancient Rome. As a polity, it included large territorial holdings aro ...
. The business practices of market traders,
guilds A guild ( ) is an association of artisan An artisan (from french: artisan, it, artigiano) is a skilled worker, skilled craft worker who makes or creates material objects partly or entirely by handicraft, hand. These objects may be wik ...
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 is a collection of mostly Federal government of the United States, federal laws that regulate the conduct and organization of businesses to promote Competition (economics), competition and prevent unjustified M ...
and European Community competition law. 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 agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ...
(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 using mathematical concepts and language Language is a structured system of communication. The structure of a language is its grammar and the free components are its vocabulary. Languag ...
s of conflict and cooperation between intelligent rational decision-makers." p.&nbs
1
Chapter-preview links, pp
vii–xi
Game theory is mainly used in
economics Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and intera ...
,
political science Political science is the science, scientific study of politics. It is a social science dealing with systems of governance and power, and the analysis of politics, political activities, political thought, political behavior, and associated c ...
, and
psychology Psychology is the science, scientific study of mind and behavior. Psychology includes the study of consciousness, conscious and Unconscious mind, unconscious phenomena, including feelings and thoughts. It is an academic discipline of immens ...
, as well as
logic Logic is the study of correct reasoning. It includes both Mathematical logic, formal and informal logic. Formal logic is the science of Validity (logic), deductively valid inferences or of logical truths. It is a formal science investigating h ...
,
computer science Computer science is the study of computation, automation, and information. Computer science spans theoretical disciplines (such as algorithms, theory of computation, information theory, and automation) to Applied science, practical discipli ...
,
biology Biology is the scientific study of life. It is a natural science with a broad scope but has several unifying themes that tie it together as a single, coherent field. For instance, all organisms are made up of Cell (biology), cells that proce ...
and
poker Poker is a family of comparing card games in which players wager over which hand is best according to that specific game's rules. It is played worldwide, however in some places the rules may vary. While the earliest known form of the game ...
. Originally, it mainly addressed
zero-sum game Zero-sum game is a Mathematical model, mathematical representation in game theory and economic theory of a situation which involves two sides, where the result is an advantage for one side and an equivalent loss for the other. In other words, pla ...
s, in which one person's gains result in losses for the other participants. Game theory is a major method used in
mathematical economics Mathematical economics is the application of Mathematics, mathematical methods to represent theories and analyze problems in economics. Often, these Applied mathematics#Economics, applied methods are beyond simple geometry, and may include differ ...
and business for modeling competing behaviors of interacting
agent Agent may refer to: Espionage, investigation, and law *, spies or intelligence officers * Law of agency, laws involving a person authorized to act on behalf of another ** Agent of record, a person with a contractual agreement with an insuranc ...
s. Applications include a wide array of economic phenomena and approaches, such as
auction An auction is usually a process of Trade, buying and selling Good (economics), goods or Service (economics), services by offering them up for Bidding, bids, taking bids, and then selling the item to the highest bidder or buying the item from the ...
s,
bargaining In the social sciences, bargaining or haggling is a type of negotiation in which the buyer and seller of a Goods and services, good or service debate the price or nature of a Financial transaction, transaction. If the bargaining produces agree ...
, mergers & acquisitions pricing,
fair division Fair division is the problem in game theory Game theory is the study of mathematical models of strategic interactions among rational agents. Myerson, Roger B. (1991). ''Game Theory: Analysis of Conflict,'' Harvard University Press, p.&nbs1 ...
, duopolies, oligopolies,
social network A social network is a social structure made up of a set of social actors (such as individuals or organizations), sets of Dyad (sociology), dyadic ties, and other Social relation, social interactions between actors. The social network perspectiv ...
formation,
agent-based computational economics Agent-based computational economics (ACE) is the area of computational economics Computational Economics is an interdisciplinary research discipline that involves computer science, economics, and management science.''Computational Economics''."Ab ...
,
general equilibrium In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an ov ...
,
mechanism design Mechanism design is a field in economics and game theory that takes an objectives-first approach to designing economic mechanisms or incentives, toward desired objectives, in strategic settings, where players act rationally. Because it starts a ...
, and
voting system An electoral system or voting system is a set of rules that determine how elections and Referendum, referendums are conducted and how their results are determined. Electoral systems are used in politics to elect governments, while non-political ...
s; and across such broad areas as
experimental economics Experimental economics is the application of experimental methods to study economic questions. Data In the pursuit of knowledge, data (; ) is a collection of discrete values that convey information, describing quantity, quality, fact, ...
,
behavioral economics Behavioral economics studies the effects of psychological Psychology is the scientific study of mind and behavior. Psychology includes the study of conscious and unconscious phenomena, including feelings and thoughts. It is an acad ...
, information economics,
industrial organization In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and market (economics), markets. Industrial organization adds real-world complic ...
, and
political economy Political economy is the study of how Macroeconomics, economic systems (e.g. Marketplace, markets and Economy, national economies) and Politics, political systems (e.g. law, Institution, institutions, government) are linked. Widely studied ph ...
. This research usually focuses on particular sets of strategies known as "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 In game theory, the Nash equilibrium, named after the mathematician John Forbes Nash Jr., John Nash, is the most common way to define the solution concept, solution of a non-cooperative game involving two or more players. In a Nash equilibrium, ea ...
. 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 INSEAD, a contraction of "Institut Européen d'Administration des Affaires" () is a non-profit business school that maintains campuses in Europe ( Fontainebleau, France France (), officially the French Republic ( ), is a country pri ...


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 ''Boston Review'' is an American quarterly political and literary magazine. It publishes political, social, and historical analysis, literary and cultural criticism, book reviews, fiction, and poetry, both online and in print. Its signature form ...
'', '' Indiana Review'', ''
North American Review The ''North American Review'' (NAR) was the first literary magazine in the United States. It was founded in Boston in 1815 by journalist Nathan Hale (journalist), Nathan Hale and others. It was published continuously until 1940, after which it was ...
'' and ''
Southwest Review The ''Southwest Review'' is a literary journal A literary magazine is a periodical devoted to literature in a broad sense. Literary magazines usually publish short stories, poetry, and essays, along with literary criticism, book reviews, biograp ...
''. The 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 Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, economist, historian, sociologist, political theorist, journalist, Critique of political economy, critic of political economy, and socialist revolutionary. His be ...
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. 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 Sigmund Freud ( , ; born Sigismund Schlomo Freud; 6 May 1856 – 23 September 1939) was an Austrian neurologist and the founder of psychoanalysis, a clinical method for evaluating and treating psychopathology, pathologies explained as originatin ...
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 The Oedipus complex (also spelled Œdipus complex) is an idea in psychoanalytic theory. The Complex (psychology), complex is an ostensibly universal phase in the life of a young boy in which, to try to immediately satisfy basic desires, he Uncons ...
(after the Greek Mythology figure who accidentally killed his father and married his mother). This is associated with the
phallic stage In Freudian Sigmund Freud ( , ; born Sigismund Schlomo Freud; 6 May 1856 – 23 September 1939) was an Austrian neurologist and the founder of psychoanalysis, a clinical method for evaluating and treating psychopathology, pathologies explain ...
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

Gandhi Mohandas Karamchand Gandhi (; ; 2 October 1869 – 30 January 1948), popularly known as Mahatma Gandhi, was an Indian lawyer, Anti-colonial nationalism, anti-colonial nationalist Quote: "... marks Gandhi as a hybrid cosmopolitan figure ...
speaks of egoistic competition. 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 Politics (from , ) is the set of activities that are associated with Decision-making, making decisions in Social group, groups, or other forms of Power (social and political), power relations among individuals, such as the distribution of res ...
. In
democracies Democracy (From grc, δημοκρατία, dēmokratía, ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which people, the people have the authority to deliberate and decide legislation ("direct democracy"), or to choo ...
, an
election An election is a formal group decision-making process by which a population chooses an individual or multiple individuals to hold Public administration, public office. Elections have been the usual mechanism by which modern representative ...
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
funding Funding 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 ...
. Finally, where there are party systems, elected leaders of different parties will ultimately compete against the other parties for
law Law is a set of rules that are created and are law enforcement, enforceable by social or governmental institutions to regulate behavior,Robertson, ''Crimes against humanity'', 90. with its precise definition a matter of longstanding debate. ...
s,
funding Funding 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 ...
and
power Power most often refers to: * Power (physics) In physics, power is the amount of energy transferred or converted per unit time. In the International System of Units, the unit of power is the watt, equal to one joule per second. In older work ...
. Finally, competition also exists between
government A government is the system or group of people governing an organized community, generally a state. In the case of its broad associative definition, government normally consists of legislature, executive, and judiciary. Government ...
s. Each
country A country is a distinct part of the world, such as a state (polity), state, nation, or other polity, political entity. It may be a sovereign state or make up one part of a larger state. For example, the country of Japan is an independent, so ...
or
nationality Nationality is a legal identification of a person in international law, establishing the person as a subject, a ''national'', of a sovereign state A sovereign state or sovereign country, is a polity, political entity represented by one c ...
struggles for world dominance, power, or
military A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. It is typically authorized and maintained by a sovereign state, with its members identifiable by their distinct ...
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., ...
competed against the
Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, ...
in the
Cold War The Cold War is a term commonly used to refer to a period of Geopolitics, geopolitical tension between the United States and the Soviet Union and their respective allies, the Western Bloc and the Eastern Bloc. The term ''Cold war (term), co ...
for world power, and the two also struggled over the different types of government (in these cases
representative democracy Representative democracy, also known as indirect democracy, is a types of democracy, type of democracy where elected people Representation (politics), represent a group of people, in contrast to direct democracy. Nearly all modern liberal democr ...
and
communism Communism (from Latin Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally a dialect spoken in the lower Tiber area (then known as Latium) around ...
). The result of this type of competition often leads to worldwide tensions, and may sometimes erupt into
war War is an intense armed conflict between State (polity), states, governments, Society, societies, or paramilitary groups such as Mercenary, mercenaries, Insurgency, insurgents, and militias. It is generally characterized by extreme violenc ...
fare.


Sports

While some
sport Sport pertains to any form of Competition, competitive physical activity or game that aims to use, maintain, or improve physical ability and Skill, skills while providing enjoyment to participants and, in some cases, entertainment to specta ...
s and
game A game is a structured form of play (activity), play, usually undertaken for enjoyment, entertainment or fun, and sometimes used as an educational tool. Many games are also considered to be work (such as professional players of spectator s ...
s (such as
fishing Fishing is the activity of trying to catch fish. Fish are often caught as wildlife from the natural environment, but may also be caught from fish stocking, stocked bodies of water such as fish pond, ponds, canals, park wetlands and reservoirs. ...
or
hiking Hiking is a long, vigorous walking, walk, usually on trails or footpaths in the countryside. Walking for pleasure developed in Europe during the eighteenth century.AMATO, JOSEPH A. "Mind over Foot: Romantic Walking and Rambling." In ''On Foot: ...
) have been viewed as primarily recreational, most sports are considered competitive. The majority involve competition between two or more persons (sometimes using
horses The horse (''Equus ferus caballus'') is a Domestication, domesticated, odd-toed ungulate, one-toed, ungulate, hoofed mammal. It belongs to the taxonomic family Equidae and is one of two Extant taxon, extant subspecies of wild horse, ''Equus fer ...
or
cars A car or automobile is a motor vehicle with wheels. Most definitions of ''cars'' say that they run primarily on roads, seat one to eight people, have four wheels, and mainly transport people A person (plural, : people) is a being tha ...
). For example, in a game of
basketball Basketball is a team sport in which two teams, most commonly of five players each, opposing one another on a rectangular court, compete with the primary objective of shooting a basketball (approximately in diameter) through the defender' ...
, 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 Pride is defined by Merriam-Webster as "reasonable self-esteem" or "confidence and satisfaction in oneself". A healthy amount of pride is good, however, pride sometimes is used interchangeably with "conceit" or "arrogance" (among other words) wh ...
. In addition, extrinsic rewards may also be given. Athletes, besides competing against other humans, also compete against
nature Nature, in the broadest sense, is the physics, physical world or universe. "Nature" can refer to the phenomenon, phenomena of the physical world, and also to life in general. The study of nature is a large, if not the only, part of science. ...
in sports such as
whitewater kayaking Whitewater kayaking is an adventure sport where a river is navigated in a decked kayak A kayak is a small, narrow watercraft which is typically propelled by means of a double-bladed paddle. The word kayak originates from the Greenlandic wor ...
or
mountaineering Mountaineering or alpinism, is a set of outdoor activities that involves ascending tall mountains. Mountaineering-related activities include traditional outdoor climbing, skiing, and traversing via ferratas. Indoor climbing, sport climbing, an ...
, 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 In sport, a championship is a Competition#Sports, competition in which the aim is to decide which individual or team is the champion. Championship systems Various forms of competition can be referred to by the term championship. Title match sy ...
. Competitive sports are governed by codified rules agreed upon by the participants. Violating these rules is considered to be
unfair competition Unfair may refer to: * Double Taz and Double LeBron James in multiverses ''wikt:fair, fair''; wikt:unfairness, unfairness or injustice * Unfair (TV series), ''Unfair'' (drama), Japanese television series * ''Unfair: The Movie'' * Unfair (song), a s ...
. 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 Gymnastics is a type of sport that includes physical exercises requiring Balance (ability), balance, Strength training, strength, Flexibility (anatomy), flexibility, agility, coordination, dedication and endurance. The movements involved in gymn ...
and competitive 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 Archery is the sport, practice, or skill of using a Bow and arrow, bow to shooting, shoot arrows.Paterson ''Encyclopaedia of Archery'' p. 17 The word comes from the Latin ''arcus'', meaning bow. Historically, archery has been used for h ...
; dual sports, such as
doubles tennis Men's doubles, Women's doubles or Mixed doubles are sports having two players per side, including; * Beach volleyball Beach volleyball is a team sport played by two teams of two or more players on a sand court divided by a net. Similar to indo ...
, and team sports competition, such as
cricket Cricket is a Bat-and-ball games, bat-and-ball game played between two teams of eleven players on a cricket field, field at the centre of which is a cricket pitch, pitch with a wicket at each end, each comprising two Bail (cricket), bails b ...
or
football Football is a family of team sports that involve, to varying degrees, Kick (football), kicking a Football (ball), ball to score a Goal (sport), goal. Unqualified, Football (word), the word ''football'' normally means the form of football tha ...
. While most sports competitions are recreation, there exist several
major Major (Commandant (rank), commandant in certain jurisdictions) is a military rank of commissioned officer status, with corresponding ranks existing in many military forces throughout the world. When used unhyphenated and in conjunction with ...
and minor professional sports leagues throughout the world. The
Olympic Games The modern Olympic Games or Olympics (french: link=no, Jeux olympiques) are the leading international sporting events featuring summer and winter sports competitions in which thousands of athletes from around the world participate in a var ...
, held every four years, is usually regarded as the international pinnacle of sports competition.


Trade

Competition is also found in
trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market (economics), market. An early form of trade, barter, s ...
. 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 The balance of trade, commercial balance, or net exports (sometimes symbolized as NX), is the difference between the monetary value of a nation's exports and imports over a certain time period. Sometimes a distinction is made between a balance ...
can be considered a crude, but widely used proxy for international competitiveness across levels:
country A country is a distinct part of the world, such as a state (polity), state, nation, or other polity, political entity. It may be a sovereign state or make up one part of a larger state. For example, the country of Japan is an independent, so ...
,
industry Industry may refer to: Economics * Industry (economics), a generally categorized branch of economic activity * Industry (manufacturing), a specific branch of economic activity, typically in factories with machinery * The wider industrial sect ...
or even
firm A company, abbreviated as co., is a legal entity In law, a legal person is any person or 'thing' (less ambiguously, any legal entity) that can do the things a human person is usually able to do in law – such as enter into contracts, la ...
. 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 Karen Horney (; ; 16 September 1885 – 4 December 1952) was a German Psychoanalysis, psychoanalyst who practised in the United States during her later career. Her theories questioned some traditional Freudian views. This was particularly true of ...
's theories on
neurosis Neurosis is a class of Functional symptom, functional mental disorders involving chronic Distress (medicine), distress, but neither delusions nor hallucinations. The term is no longer used by the professional Psychiatry, psychiatric community i ...
; 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-worth Self-esteem is confidence in one's own worth or abilities. Self-esteem encompasses beliefs about oneself (for example, "I am loved", "I am worthy") as well as emotional states, such as triumph, despair, pride, and shame. Smith and Mackie (2007) d ...
. 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
narcissistic Narcissism is a self-centered personality style characterized as having an excessive interest in one's physical appearance or image and an excessive preoccupation with one's own needs, often at the expense of others. Narcissism exists on a co ...
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 In biology, adaptation has three related meanings. Firstly, it is the dynamic evolutionary process of natural selection that fits organisms to their environment, enhancing their Fitness (biology), evolutionary fitness. Secondly, it is a stat ...
, and ultimately of
evolution Evolution is change in the heredity, heritable Phenotypic trait, characteristics of biological populations over successive generations. These characteristics are the Gene expression, expressions of genes, which are passed on from parent to ...
. 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 Richard Dawkins (born 26 March 1941) is a British evolutionary biology, evolutionary biologist and author. He is an Oxford fellow, emeritus fellow of New College, Oxford and was Simonyi Professor for the Public Understanding of Science, Prof ...
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 Darwinist Social Darwinism refers to various theories and societal practices that purport to apply biological concepts of natural selection and survival of the fittest to sociology, economics and politics, and which were largely defined by scholars in We ...
s 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 Recreation is an activity of leisure, leisure being discretionary time. The "need to do something for recreation" is an essential element of human biology and psychology. Recreational activities are often done for happiness, enjoyment, amusement, ...
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 In ecology, a biological interaction is the effect that a pair of organisms living together in a Community (ecology), community have on each other. They can be either of the same species (intraspecific interactions), or of different species (inte ...
*
Competition regulator A competition regulator is the institution that oversees the functioning of the markets. And the Law in which it takes cognizance of situations having any type of impediments and distortions on the markets and correct them is the competition law ...
*
Competitor analysis Competitive analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential Competition (economics), competitors. This analysis provides both an offensive and defensive strategic context to ...
*
Conflict of interest A conflict of interest (COI) is a situation in which a person or organization is involved in multiple wikt:interest#Noun, interests, finance, financial or otherwise, and serving one interest could involve working against another. Typically, t ...
*
Cooperation Cooperation (written as co-operation in British English) is the process of groups of organisms working or acting together for common, mutual, or some underlying benefit, as opposed to working in competition for selfish benefit. Many animal a ...
* Ecological model of competition *
Monopolistic competition Monopolistic competition is a type of imperfect competition such that there are many producers competing against each other, but selling products that are differentiation (economics), differentiated from one another (e.g. by branding or qualit ...
* Non-zero-sum game * Win-win game *
Planned economy A planned economy is a type of economic system An economic system, or economic order, is a system of Production (economics), production, resource allocation and Distribution (economics), distribution of goods and services within a society or ...
*
Prisoner's dilemma The Prisoner's Dilemma is an example of a game analyzed in game theory. It is also a thought experiment that challenges two completely Rationality#Economics, rational Agent-based model, agents to a dilemma: cooperate with their partner for mutu ...
*
Sharing Sharing is the joint use of a resource or space. It is also the process of dividing and distributing. In its narrow sense, it refers to joint or alternating use of inherently finite goods, such as a common pasture or a shared residence. St ...
* Student competitions * Zero-profit condition *
Zero-sum Zero-sum game is a Mathematical model, mathematical representation in game theory and economic theory of a situation which involves two sides, where the result is an advantage for one side and an equivalent loss for the other. In other words, pla ...


References

{{Authority control Social events