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{{Short description|Rivalry where multiple parties strive for a goal which cannot be shared}}
{{Other uses|Competition (disambiguation)|Compete (disambiguation)|Competitor (ship)}}

[[File:Athletics competitions.jpg|thumb|right|300px|Competition in sports. One selection of images showing some of the sporting events that are classed as [[sport of athletics|athletics]] competitions.]]

'''Competition''' is a [[rivalry]] where two or more parties strive for a common [[goal]] which cannot be shared: where one's gain is the other's loss (an example of which is a [[zero-sum game]]).<ref>{{Citation |last1=Smith |first1=Ken G. |title=Competitive Dynamics Research: Critique and Future Directions |date=2017-11-26 |url=http://doi.wiley.com/10.1111/b.9780631218616.2006.00012.x |work=The Blackwell Handbook of Strategic Management |pages=309–354 |editor-last=Hitt |editor-first=Michael A. |place=Oxford, UK |publisher=Blackwell Publishing Ltd |language=en |doi=10.1111/b.9780631218616.2006.00012.x |isbn=978-1-4051-6402-3 |access-date=2022-09-11 |last2=Ferrier |first2=Walter J. |last3=Ndofor |first3=Hermann |editor2-last=Freeman |editor2-first=R. Edward |editor3-last=Harrison |editor3-first=Jeffrey S.|url-access=subscription }}</ref> 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 (sociology)|recognition]].

Competition occurs in nature, between living organisms which co-exist in the same [[natural environment|environment]]. Animals compete over water supplies, food, mates, and other [[resource (biology)|biological resources]]. [[Human]]s usually [[Survival of the fittest|compete for food and mates]], though when these needs are met deep [[rivalries]] often arise over the pursuit of [[wealth]], power, prestige, and [[celebrity|fame]] when in a static, repetitive, or unchanging environment.<ref name=":1">{{Cite journal |last1=Cabral |first1=J. Centurion |last2=Garcia |first2=Calebe Mattos |last3=Solano |first3=Maiara |last4=de Almeida |first4=Rosa Maria Martins |date=2022-12-29 |title=More than a feeling: Effects of competitive asymmetry on human emotions |url=https://www.tandfonline.com/doi/full/10.1080/00221309.2022.2160427 |journal=The Journal of General Psychology |volume=150 |issue=4 |language=fr
 |pages=485–511 |doi=10.1080/00221309.2022.2160427 |pmid=36579926 |s2cid=255292057 |issn=0022-1309|url-access=subscription }}</ref> Competition is a major tenet of [[market economy|market economies]] 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]]; however, in the real world, mixtures of cooperation and competition are the norm.<ref>{{Cite web |title=Competition |url=https://www.sociologyguide.com/basic-concepts/Competition.php |archive-url=https://web.archive.org/web/20220317221907/https://www.sociologyguide.com/basic-concepts/Competition.php |archive-date=17 March 2022 |access-date=2022-09-11 |website=Sociology Guide}}</ref> 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".<ref>{{Cite journal|last=Collingwood|first=Robin, George|date=1926|title=Economics as a Philosophical Science|url=https://www.journals.uchicago.edu/doi/abs/10.1086/intejethi.36.2.2377247?journalCode=intejethi|journal=The International Journal of Ethics|volume=36|issue=2|pages=162–185 at. p. 177|doi=10.1086/intejethi.36.2.2377247|s2cid=143530850|url-access=subscription}}</ref> Optimal strategies to achieve goals are studied in the branch of mathematics known as [[game theory]].

Competition has been studied in several fields, including [[psychology]], [[sociology]] and [[anthropology]]. Social [[psychologist]]s, for instance, study the nature of competition. They investigate the natural urge of competition and its circumstances. They also study [[group dynamics]], to detect how competition emerges and what its effects are. [[Sociologist]]s, meanwhile, study the effects of competition on society as a whole. Additionally, [[anthropologist]]s study the [[history]] and prehistory of competition in various cultures. They also investigate how competition manifested itself in various [[culture|cultural]] settings in the past, and how competition has developed over time.

== Biology and ecology ==
<!-- This section is linked from [[Natural selection]] -->
{{Main|Competition (biology)}}
Competition within, between, and among species is one of the most important forces in biology, especially in the field of [[ecology]].<ref name="Keddy, P.A 2001">{{Cite book |last=Keddy |first=Paul A. |url=https://www.worldcat.org/oclc/840307667 |title=Competition |date=2001 |publisher=Springer Netherlands |isbn=978-94-010-0694-1 |edition=2nd |location=Dordrecht |oclc=840307667}}</ref>

Competition between members of a species ("intraspecific") for resources such as [[food]], [[water]], [[Territory (animal)|territory]], and [[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]]).<ref>{{cite journal|last1=Baldauf|first1=Sebastian A.|last2=Engqvist|first2=Leif|last3=Weissing|first3=Franz J.|title=Diversifying evolution of competitiveness|journal=Nature Communications|date=29 October 2014|volume=5|pages=5233|doi=10.1038/ncomms6233|pmid=25351604|bibcode=2014NatCo...5.5233B|doi-access=free}}</ref>

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 [[extinction|die out]] unless they [[adaptation|adapt]] by character dislocation, for instance. According to [[evolutionary theory]], this competition within and between species for resources plays a significant role in [[natural selection]]. 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 larger factor than competition.<ref name="SahneyBentonFerry2010">{{cite journal|author1=Sahney, S. |author2=Benton, M.J. |author3=Ferry, P.A.|year=2010|title=Links between global taxonomic diversity, ecological diversity and the expansion of vertebrates on land|journal=Biology Letters|volume=6|issue=4|pages=544–47|doi=10.1098/rsbl.2009.1024|pmc=2936204|pmid=20106856}}</ref> This is illustrated by living plant communities where asymmetric competition and competitive dominance frequently occur.<ref name="Keddy, P.A 2001" /> Multiple examples of symmetric and asymmetric competition also exist for animals.<ref>{{cite journal|last1=Borzée|first1=Amaël|last2=Kim|first2=Jun Young|last3=Jang|first3=Yikweon|title=Asymmetric competition over calling sites in two closely related treefrog species|journal=Scientific Reports|date=7 Sep 2016|volume=6|page=32569|doi=10.1038/srep32569|pmc=5013533|pmid=27599461|bibcode=2016NatSR...632569B}}</ref>

== Consumer competitions – games of luck or skill ==
{{Further|Game of chance}}
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.<ref>{{cite web |title=Trade promotion lotteries |url=http://www.olgr.nsw.gov.au/promos_trade_promos.asp |url-status=dead |archive-url=https://web.archive.org/web/20130729002216/http://www.olgr.nsw.gov.au/promos_trade_promos.asp |archive-date=2013-07-29 |access-date=2013-08-02 |website=Trade & Investment |publisher=NSW Government Office of Liquor, Gaming & Racing}}</ref>

People that enjoy entering competitions are known as compers.<ref>{{Cite journal |last=Sear |first=Cynthia |date=2022-08-25 |title=On Becoming Unstuck: Teleoaffective Tactics, Thrills, and the Serial Entrants of Promotional Competitions in Australia |journal=Ethnos |volume=89 |issue=4 |pages=573–592 |doi=10.1080/00141844.2022.2114517 |s2cid=251873459 |issn=0014-1844|doi-access=free }}</ref><ref>{{Cite web |last=Sear |first=Cynthia |date=2022-11-20 |title=It's such a rush: the secret lives of compers |website=[[TheGuardian.com]] |url=https://www.theguardian.com/lifeandstyle/2022/nov/20/its-such-a-rush-the-secret-lives-of-compers}}</ref>

==Competitiveness==
Many [[philosopher]]s and [[psychologist]]s have identified a trait in most living organisms which can drive the particular organism to compete. This trait, called competitiveness, is viewed as having a high [[adaptive value]], which coexists along with the urge for survival.<ref name=":1" /> Competitiveness, or the inclination to compete, though, has become synonymous with aggressiveness and ambition in the [[English language]]. More advanced [[civilization]]s integrate aggressiveness and competitiveness into their [[Social interaction|interactions]], as a way to distribute resources and adapt. Many plants compete with neighboring ones for sunlight.

The term also applies to [[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.

===One-upmanship===
'''One-upmanship''', also called "one-upsmanship",<ref name="Merriam-Webster one-upmanship">{{cite web |url=https://www.merriam-webster.com/dictionary/one-upmanship |title=One-upmanship |publisher=Merriam-Webster |accessdate=2021-04-26 }}</ref> is the art or practice of successively outdoing a [[competitor]]. The term was first used in the title of a book by [[Stephen Potter]], published in 1952<ref>In full, ''One-Upmanship: Being Some Account of the Activities and Teachings of the Lifemanship Correspondence College of One-Upness and Games Lifemastery''.</ref> as a follow-up to ''The Theory and Practice of [[Gamesmanship]] (or the Art of Winning Games without Actually Cheating)'' (1947). Other ''Lifemanship'' titles in his series of [[tongue-in-cheek]] [[self-help book]]s, as well as film and television derivatives, teach various ploys to achieve this. This comic [[satire]] of [[self-help]] style guides manipulates traditional British conventions for the gamester. The principle being all life being a game, who understands that ''if you're not one-up, you're one-down.'' Potter's unprincipled principles apply to almost any possession, experience or situation, deriving maximum undeserved rewards and discomfitting the opposition. The 1960 film [[School for Scoundrels (1960 film)|''School for Scoundrels'']] and its [[School for Scoundrels (2006 film)|2006 remake]] were satiric portrayals of how to use Potter's ideas.{{cn|date=November 2024}}

In that context, the term refers to a satiric course in the [[gambit]]s required for the systematic and conscious practice of "creative intimidation", making one's associates feel inferior and thereby gaining the status of being "one-up" on them. Viewed seriously, it is a phenomenon of [[group dynamics]] that can have significant effects in the [[management]] field: for instance, manifesting in [[office politics]].<ref>{{cite book |title=Wiley CIAexcel Exam Review 2015 |first1=S. Rao |last1=Vallabhaneni |publisher=John Wiley & Sons |year=2015 |isbn=978-1-119-09431-9 |page=326 |chapter=Organizational Politics}}</ref>

==Social==
Social competition is the competition for [[social status]] or [[Power (social and political)|social power]], examples include [[keeping up with the Joneses]], [[female intrasexual competition]] or [[male intrasexual competition]]. Social competition can contribute to [[social stress]].<ref name="f716">{{cite journal | last=Gilbert | first=Paul | title=EVOLUTION AND SOCIAL ANXIETY | journal=Psychiatric Clinics of North America | volume=24 | issue=4 | date=2001 | doi=10.1016/S0193-953X(05)70260-4 | pages=723–751}}</ref> 

== Education ==
{{Main|Competition-based learning}}
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]]. Countries such as England and Singapore have [[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. Critics of competition as a motivating factor in education systems, such as [[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".<ref>{{Cite book |last=Kohn |first=Alfie |url=http://worldcat.org/oclc/1007073234 |title=No contest : the case against competition |publisher=Houghton Mifflin |year=1986 |isbn=978-0-395-63125-6 |location=Boston |oclc=1007073234}} {{Page needed|date=September 2022}}</ref> Economist [[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."<ref>{{Cite news |last=Salitto |first=David |date=12 April 2011 |title=What really makes us happy? |language=en-GB |work=BBC News |url=https://www.bbc.co.uk/news/av/uk-13052639 |url-status=live |access-date=2022-09-11 |archive-url=https://web.archive.org/web/20220302213504/https://www.bbc.com/news/av/uk-13052639 |archive-date=2 March 2022}}</ref>

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 (philosophy)|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.<ref>{{cite journal|last1=Conti|first1=Regina|title=The impact of competition on intrinsic motivation and creativity: Considering gender, gender segregation and gender role orientation|date=December 2001|url=https://www.researchgate.net/publication/223760263|journal=Personality and Individual Differences|volume=31|issue=8|pages=1273–1289|doi=10.1016/S0191-8869(00)00217-8|last2=Picariello|first2=Martha|last3=Collins|first3=Mary}}</ref><ref>{{cite journal|last1=Eisenberg|first1=Jacob|title=The Effects of Competition on Improvisers' Motivation, Stress, and Creative Performance|date=16 April 2012|journal=Creativity Research Journal|volume=23|issue=2|pages=129–136|doi=10.1080/10400419.2011.571185|issn=1040-0419|last2=Thompson|first2=William Forde|s2cid=144893872}}</ref>

==Economics==
{{Main|Competition (economics)}}

Merriam-Webster gives as one definition of competition (relating to [[business sector|business]]) 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".<ref>Compare: [http://m-w.com/dictionary/competition Definition of competition] - "competition [...] 1 : the act or process of competing : rivalry: such as [...] a : the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms "</ref> [[Adam Smith]] in his 1776 book ''[[The Wealth of Nations]]'' and later economists described competition in general as allocating productive [[resource]]s to their most highly valued uses and encouraging [[X-inefficiency|efficiency]].<ref>[[George J. Stigler]] ([[The New Palgrave: A Dictionary of Economics|[1987]]] 2008). "competition," ''[[The New Palgrave Dictionary of Economics]]''. [http://www.dictionaryofeconomics.com/article?id=pde2008_C000261&q=competition&topicid=&result_number=6 Abstract.] {{Webarchive|url=https://web.archive.org/web/20150215032134/http://www.dictionaryofeconomics.com/article?id=pde2008_C000261&q=competition&topicid=&result_number=6 |date=2015-02-15 }}</ref>{{request quotation|date=March 2020}} Later [[microeconomic theory]] distinguished between [[perfect competition]] and [[imperfect competition]], concluding that no system of resource allocation is more efficient than [[perfect competition]].{{citation needed|date=March 2020}} 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]]) or little competition ([[oligopoly]]).{{citation needed|date=March 2020}}

However, competition may also lead to wasted (duplicated) effort and to increased [[cost]]s (and prices) in some circumstances. For example, the intense competition for the small number of [[superstar|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{{which|date=March 2020}} 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.<ref>{{cite journal |url= http://marketing.wharton.upenn.edu/documents/research/CompOrientPDF%2011-27%20%282%29.pdf |title= The Profitability of Winning |author1= J. Scott Armstrong |author2= Fred Collopy |journal= Chief Executive |pages= 61–63 |year= 1994 |access-date= 2011-12-06 |archive-url= https://web.archive.org/web/20100622023252/http://marketing.wharton.upenn.edu/documents/research/CompOrientPDF%2011-27%20(2).pdf |archive-date= 2010-06-22 |url-status= dead | quote = A 1996 review of the evidence, summarized in this paper, found that competitor-oriented objectives reduced profitability. We describe new evidence from 12 studies, one of which is introduced in this paper. The new evidence supports the conclusion that competitor-oriented objectives are harmful, especially when managers receive information about competitors' market shares.}}</ref> In addition, the strong desire to defeat rival firms with competitive prices has the strong possibility of causing [[price war]]s.<ref>{{cite journal |author1=J. Scott Armstrong |author2=Kesten C. Greene |year=2007 |title=Competitor-oriented Objectives: The Myth of Market Share |url=https://ijb.cyut.edu.tw/var/file/10/1010/img/853/V121-6.pdf |url-status=live |journal=International Journal of Business |volume=12 |issue=1 |pages=116–34 |issn=1083-4346 |archive-url=https://web.archive.org/web/20220911045115/https://ijb.cyut.edu.tw/var/file/10/1010/img/853/V121-6.pdf |archive-date=11 September 2022}}</ref>

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.'' It is a process of rivalry between firms (or consumers) intensifying selective pressures for improvements. One can restate this as a process of discovery.<ref>{{Cite journal|last=Blaug|first=Mark|title=Is Competition Such a Good Thing? Static Efficiency versus Dynamic Efficiency|date=2001|url=http://dx.doi.org/10.1023/a:1011160622792|journal=Review of Industrial Organization|volume=19|issue=1|pages=37–48|doi=10.1023/a:1011160622792|s2cid=154441911|issn=0889-938X|url-access=subscription}}</ref>

Three levels of end-state economic competition have been classified:{{by whom|date=March 2020}}
* The most narrow form is '''direct competition''' (also called "category competition" or "brand competition"), where [[product (business)|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]] might want to spend their available [[income|money]]. 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 [[finance|financing]] on the capital markets (equity or debt) in order to generate the necessary cash for their operations. [[Investor]] 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 writer]]s sometimes refer to '''internal competition'''. This is competition within companies. The idea was first introduced by [[Alfred Sloan]] at [[General Motors Corporation|General Motors]] in the 1920s. Sloan deliberately created areas of overlap between [[Division (organization)|division]]s of the company so that each division would compete with the other divisions. For example, the [[Chevrolet]] division would compete with the [[Pontiac (automobile)|Pontiac]] division for some [[market segment]]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]] initiated a deliberate system of internal brand-versus-brand rivalry. The company was organized{{by whom|date=March 2020}} around different [[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]]s correlated most closely with competition. The literature widely supported the importance of competition as the primary driver of reverse auctions success.<ref name=":0">{{Cite journal |last1=Shalev |first1=Moshe Eitan |last2=Asbjornsen |first2=Stee |date=2010-03-30 |title=Electronic Reverse Auctions and the Public Sector – Factors of Success |url=https://papers.ssrn.com/abstract=1727409 |journal=Journal of Public Procurement |language=en |location=Rochester, NY |volume=10 |issue=3 |pages=428–452|ssrn=1727409 }}</ref> Their findings appear to support that argument, as competition correlated strongly with the reverse auction success, as well as with the number of bidders.<ref name=":0" />

Business and economic competition in most [[country|countries]] is often{{quantify|date=March 2020}} 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]] or of a [[government-granted monopoly]]. Governments  may institute [[tariffs]], [[subsidies]] or other [[protectionist]] 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]] and [[competition law]].  Another component of these activities is the [[discovery process]], with instances of higher [[government regulation]]s typically leading to less competitive businesses being launched.<ref>{{Cite journal |last=Kirzner |first=Israel M. |date=30 September 1982 |title=Competition, Regulation, and the Market Process: An "Austrian" Perspective |url=https://object.cato.org/sites/cato.org/files/pubs/pdf/pa018.pdf |url-status=live |journal=Cato Institute Policy Analysis |publisher=Cato Institute |issue=18 |archive-url=https://web.archive.org/web/20190802170609/https://object.cato.org/sites/cato.org/files/pubs/pdf/pa018.pdf |archive-date=2 August 2019}}</ref>

Nicholas Gruen has referred to ''The Competition Delusion'',<ref>{{Cite journal |last=Gruen |first=Nicholas |date=February 2020 |title=Trust and the competition delusion |url=https://www.griffithreview.com/articles/trust-competition-delusion-gruen/ |journal=Griffith Review |volume=67 |isbn=9781925773804}}</ref> 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.

===Law===
{{Main|Competition law}}
[[File:U.S. Department of Justice headquarters, August 12, 2006.jpg|thumb|right |The [[United States Department of Justice|Department of Justice]] building in [[Washington, D.C.]] houses the influential [[United States antitrust law|antitrust]] enforcers of U.S. competition laws.]]
Competition [[law]], known in the [[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]] of sports shops who together fix football-jersey prices higher than normal is illegal.<ref>{{Cite court|litigants=JJB Sports PLC v Office of Fair Trading|court=CAT|opinion=1022/1/1/03|date=1 October 2003|url=https://www.catribunal.org.uk/cases/10221103-jjb-sports-plc}}</ref>
* 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]] on computer platforms makes consumers use its media player.<ref>In the E.U. side of the saga, see [https://curia.europa.eu/jcms/upload/docs/application/pdf/2009-02/cp070063en.pdf Case T-201/04] <br/>{{Webarchive|url= https://web.archive.org/web/20220210183724/https://curia.europa.eu/jcms/upload/docs/application/pdf/2009-02/cp070063en.pdf |date= 2022-02-10 }} ''Microsoft v. Commission'' Order, [revised] 17 September 2007</ref>
* Third, to preserve competitive markets, the law supervises the [[mergers and acquisitions]] of very large corporations. Competition authorities could for instance require that a large packaging company give plastic bottle [[license]]s to competitors before taking over a major [[Polyethylene terephthalate|PET]] producer.<ref>{{Cite court|litigants=Commission of the European Communities v Tetra Laval BV|court=EU Court of Justice|reporter=European Court Reports|opinion=Case C-12/03 P|date=15 February 2005|url=https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A62003CJ0012}}</ref>

In all three cases, competition law aims to protect the [[consumer welfare|welfare of consumers]] by ensuring that each business must compete for its share of the [[market economy]].{{cn|date=April 2025}}

==Game theory==
{{main|Game theory}}
Game theory is "the study of [[mathematical model]]s of conflict and cooperation between intelligent rational decision-makers."<ref name="Myerson">{{Cite book |last=Myerson |first=Roger B. |title=Game Theory: Analysis of Conflict |publisher=Harvard University Press |year=1997 |isbn=9780674341166}} p.&nbsp;[https://books.google.com/books?id=E8WQFRCsNr0C&pg=PA1 1]. Chapter-preview links, pp. [https://books.google.com/books?id=E8WQFRCsNr0C&pg=PR7 vii–xi].</ref> Game theory is mainly used in [[economics]], [[political science]], and [[psychology]], as well as [[logic]], [[computer science]], [[biology]] and [[poker]].<ref>{{cite news |author=Chabris |first=Christopher |date=26 July 2013 |title=The Science of Winning Poker |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/SB10001424127887323610704578625812355516182 |url-access=subscription |access-date=11 September 2022}}</ref> Originally, it mainly addressed [[zero-sum game]]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)|agent]]s.<ref name="r1" /> Applications include a wide array of economic phenomena and approaches, such as [[auction]]s, [[bargaining]], [[mergers & acquisitions]] pricing,<ref name="GT-A-E-00" /> [[fair division]], [[Duopoly|duopolies]], [[Oligopoly|oligopolies]], [[social network]] formation, [[agent-based computational economics]],<ref name="r2" /> [[general equilibrium]], [[mechanism design]],<ref name="r3" /> and [[voting system]]s;<ref name="r4" /> and across such broad areas as [[experimental economics]],<ref name="r5" /> [[Behavioral game theory|behavioral economics]],<ref name="r6" /> [[information economics]],<ref name="r7" /> [[industrial organization]],<ref name="r8" /> and [[political economy]].<ref name="r9" /><ref name="r10" />

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.<ref name="GT-F-R-09">[http://www.insead.edu/facultyresearch/research/doc.cfm?did=46503 Game-theoretic model to examine the two tradeoffs in the acquisition of information for a careful balancing act] {{Webarchive|url=https://web.archive.org/web/20130524231021/http://www.insead.edu/facultyresearch/research/doc.cfm?did=46503|date=2013-05-24}} Research paper [[INSEAD]]</ref><ref name="GT-F-R-10">{{Cite news |last1=Chevalier-Roignant |first1=Benoît |last2=Trigeorgis |first2=Lenos |date=15 February 2012 |title=Options Games: Balancing the trade-off between flexibility and commitment |work=European Financial Review |url=http://www.europeanfinancialreview.com/?p=4645 |url-status=dead |access-date=3 January 2013 |archive-url=https://web.archive.org/web/20130620053305/http://www.europeanfinancialreview.com/?p=4645 |archive-date=20 June 2013}}</ref>

==Philosophy==
[[Margaret Heffernan]]'s study, ''A Bigger Prize'',<ref>
{{cite book|url=https://books.google.com/books?id=Kc3HAQAAQBAJ|title=A Bigger Prize: Why Competition Isn't Everything and How We Do Better|last1=Heffernan|first1=Margaret|publisher=Simon and Schuster|isbn=9781471100772|location=London|date=2014|author-link1=Margaret Heffernan|access-date=2014-03-16}}
</ref>
examines the perils and disadvantages of competition in (for example) biology, families, sport, education, commerce and the Soviet Union.<ref>
{{cite news|url=https://www.theguardian.com/books/2014/mar/10/bigger-prize-review-competition-margaret-heffernan|title=A Bigger Prize review – the price we pay for competition|last1=Morris|first1=Iain|newspaper=The Guardian|access-date=2014-03-16|publisher=Guardian News and Media Limited|department=Books|date=2014-03-10|edition=UK|issn=0261-3077|quote=Margaret Heffernan's brave study shows how the competitive instinct can be bad for us in all walks of life, from sport to finance}}
</ref>

===Marx===
[[Karl Marx]] insisted that "the capitalist system fosters competition and egoism in all its members and thoroughly undermines all genuine forms of community".<ref>
{{cite book|url=https://books.google.com/books?id=y2UEAQAAIAAJ|title=Marx and Justice: The Radical Critique of Liberalism|last1=Buchanan|first1=Allen E.|publisher=Rowman & Littlefield Publishers, Incorporated|isbn=9780847670390|series=Philosophy and Society Series|date=1982|page=95|quote=This problem is greatly exacerbated by Marx's insistence that the capitalist system fosters competition and egoism in all its members and thoroughly undermines all genuine forms of community.|author-link1=Allen Buchanan|access-date=2014-03-16}}
</ref>
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.<ref name="allenb">
{{Cite book |last=Buchanan |first=Allen E. |url=https://books.google.com/books?id=j1AOAAAAQAAJ&pg=PP1 |title=Marx and Justice: The Radical Critique of Liberalism |date=1982-01-01 |publisher=Methuen |isbn=978-0-416-33450-0 |language=en}}
</ref> 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.<ref name="allenb" />

===Mahatma Gandhi===
[[Mahatma Gandhi|Gandhi]] speaks of egoistic competition.<ref name="Gandhi">
{{Cite book |last=Dayal |first=Parmeshwari |url=https://books.google.com/books?id=FemHmw5fGQUC&pg=PP1 |title=Gandhian Theory of Social Reconstruction |date=2006 |publisher=Atlantic Publishers & Dist |isbn=978-81-269-0603-1 |language=en}}</ref> 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.<ref name="Gandhi" /> 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.<ref name="Gandhi" />

== 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]]. "We share a common belief that innovation comes from the edges," said Luisa Delgado, an SAP HR director, who noted the company valued the ability of many autistic people to "think differently and spark innovation." SAP’s Bangalore office saw its productivity increase after deploying autistic hires. The company is working closely with a Danish not-for-profit specializing in IT job placements for individuals with autism spectrum disorders."<ref>{{cite news |last1=Schrage |first1=Michael |title=Autism's Competitive Advantage, and Challenge, in the Workplace |url=https://hbr.org/2013/05/autisms-competitive-advantage}}</ref> 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) <ref>{{cite journal|author1=Manthri P.|author2=Bhokray K.|author3=Momaya K. S.|year=2015|title=Export Competitiveness of Select Firms from India: Glimpse of Trends and Implications|url=https://kmomaya.files.wordpress.com/2015/05/ijm_pranusha_bhokray_momaya_export_competitiveness_pre-publication_review.pdf|journal=Indian Journal of Marketing|volume=45|issue=5|pages=7–13|doi=10.17010/ijom/2015/v45/i5/79934|access-date=2015-05-28|archive-url=https://web.archive.org/web/20160304210603/https://kmomaya.files.wordpress.com/2015/05/ijm_pranusha_bhokray_momaya_export_competitiveness_pre-publication_review.pdf|archive-date=2016-03-04|url-status=dead}}</ref>

=== 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.<ref>{{cite journal |author1=Ryckman, R. M. |author2=Thornton, B. |author3=Butler, J. C. |year=1994 |title= Personality correlates of the hypercompetitive attitude scale: Validity tests of Horney's theory of neurosis |journal=[[Journal of Personality Assessment]]|volume=62 |issue=1 |pages=84–94 |doi=10.1207/s15327752jpa6201_8 |pmid=8138889 }}</ref> Hypercompetitive individuals generally believe that winning is the only thing that matters.<ref>{{cite news|title=Competition freaks |url=https://www.latimes.com/archives/la-xpm-2005-nov-28-he-competition28-story.html |website=Los Angeles Times |access-date=2 February 2021 |date=28 November 2005}}</ref>

== See also ==
{{Wiktionary|competition|competitor}}
{{Wikiquote}}
* [[Arms race]]
* [[Asymmetric competition]]
* [[Competition regulator]]
* [[Competitor analysis]]
* [[Cooperation]]
* [[Ecological model of competition]]
* [[Monopolistic competition]]
* [[Non-zero-sum game]]
* [[Prisoner's dilemma]]
* [[Student competitions]]
* [[Win-win game]]
* [[Zero-sum]]

== References ==
{{Reflist|30em|refs=
<ref name=r1>• At [[JEL classification codes#Mathematical and quantitative methods JEL: C Subcategories|JEL:C7]] of the ''[[Journal of Economic Literature]]'' classification codes.<br />&nbsp;&nbsp; • [[Robert Aumann|R.J. Aumann]] (2008). "game theory," ''The New Palgrave Dictionary of Economics'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_G000007&edition=current&q=game%20theory&topicid=&result_number=4 Abstract.]<br />&nbsp;&nbsp; • [[Martin Shubik]] (1981). "Game Theory Models and Methods in Political Economy," in [[Kenneth Arrow]] and Michael Intriligator, ed., ''Handbook of Mathematical Economics'', v. 1, pp. 285–330 {{doi|10.1016/S1573-4382(81)01011-4}}.<br />&nbsp;&nbsp; • [[Carl Shapiro]] (1989). "The Theory of Business Strategy," ''RAND Journal of Economics'', 20(1), pp. 125–37 {{JSTOR|2555656}}.</ref>

<ref name=r2>• [[Leigh Tesfatsion]] (2006). "Agent-Based Computational Economics: A Constructive Approach to Economic Theory," ch. 16, ''Handbook of Computational Economics'', v. 2, pp. 831–80 {{doi|10.1016/S1574-0021(05)02016-2}}.<br />&nbsp;&nbsp; • [[Joseph Y. Halpern]] (2008). "computer science and game theory," ''The New Palgrave Dictionary of Economics'', 2nd Edition. [http://www.dictionaryofeconomics.com/article?id=pde2008_C000566&edition=current&q=&topicid=&result_number=1 Abstract].</ref>

<ref name=r3>• From ''[[The New Palgrave Dictionary of Economics]]'' (2008), 2nd Edition:<br />&nbsp;&nbsp;&nbsp;&nbsp; [[Roger B. Myerson]]. "mechanism design." [http://www.dictionaryofeconomics.com/article?id=pde2008_M000132&edition=current&q=mechanism%20design&topicid=&result_number=3 Abstract]  {{webarchive|url=https://web.archive.org/web/20111123042038/http://www.dictionaryofeconomics.com/article?id=pde2008_M000132&edition=current&q=mechanism%20design&topicid=&result_number=3 |date=November 23, 2011 }}.<br />&nbsp;&nbsp;&nbsp;&nbsp; _____. "revelation principle." [http://www.dictionaryofeconomics.com/article?id=pde2008_R000137&edition=current&q=moral&topicid=&result_number=1 Abstract].<br />&nbsp;&nbsp; • Tuomas Sandholm. "computing in mechanism design." [http://www.dictionaryofeconomics.com/article?id=pde2008_C000563&edition=&field=keyword&q=algorithmic%20mechanism%20design&topicid=&result_number=1 Abstract.]  {{webarchive|url=https://web.archive.org/web/20111123042038/http://www.dictionaryofeconomics.com/article?id=pde2008_C000563&edition=&field=keyword&q=algorithmic%20mechanism%20design&topicid=&result_number=1 |date=November 23, 2011 }}<br />&nbsp;&nbsp; • [[Noam Nisan]] and Amir Ronen (2001). "Algorithmic Mechanism Design," ''Games and Economic Behavior'', 35(1–2), pp. [https://www.cs.cmu.edu/~sandholm/cs15-892F09/Algorithmic%20mechanism%20design.pdf 166–96].<br />&nbsp;&nbsp; • [[Noam Nisan]] ''et al''., ed. (2007). ''Algorithmic Game Theory'', Cambridge University Press. [http://www.cup.cam.ac.uk/asia/catalogue/catalogue.asp?isbn=9780521872829 Description] {{webarchive|url=https://web.archive.org/web/20120505140924/http://www.cup.cam.ac.uk/asia/catalogue/catalogue.asp?isbn=9780521872829 |date=2012-05-05 }}.</ref>

<ref name=r4>Aumann, R. and Hart, S. (eds.) (1994). ''Handbook of Game Theory with Economic Applications'', v. 2, ch. 30: [http://www.sciencedirect.com/science/article/pii/S1574000505800621 "Voting Procedures"] and ch. 31: [http://www.sciencedirect.com/science/article/pii/S1574000505800633 "Social Choice."]</ref>

<ref name=r5>• [[Vernon L. Smith]], 1992. "Game Theory and Experimental Economics: Beginnings and Early Influences," in E. R. Weintraub, ed., ''Towards a History of Game Theory'', pp. [https://books.google.com/books?hl=en&lr=&id=9CHY2Gozh1MC&oi=fnd&pg=PA241 241–82].<br />&nbsp;&nbsp; • _____, 2001. "Experimental Economics," ''[[International Encyclopedia of the Social & Behavioral Sciences]]'', pp. 5100–08. [http://www.sciencedirect.com/science/article/pii/B0080430767022324 Abstract] per sect. 1.1 & 2.1.<br />&nbsp;&nbsp; • [[Charles R. Plott]] and Vernon L. Smith, ed., 2008. ''Handbook of Experimental Economics Results'', v. 1, Elsevier, Part 4, Games, [http://www.sciencedirect.com/science/handbooks/15740722 ch. 45–66].<br />&nbsp;&nbsp; • Vincent P. Crawford (1997). "Theory and Experiment in the Analysis of Strategic Interaction," in ''Advances in Economics and Econometrics: Theory and Applications'', pp. [http://weber.ucsd.edu/~vcrawfor/CrawfordThExp97.pdf 206–42]. Cambridge. Reprinted in Colin F. Camerer ''et al''., ed. (2003). ''Advances in Behavioral Economics'', Princeton. 1986–2003 papers. [http://press.princeton.edu/titles/8437.html Description], [https://books.google.com/books?id=sA4jJOjwCW4C&pg=PR7 preview], Princeton, ch. 12.<br />&nbsp;&nbsp; • Martin Shubik, 2002. "Game Theory and Experimental Gaming," in R. Aumann and S. Hart, ed., ''Handbook of Game Theory with Economic Applications'', Elsevier, v. 3, pp. 2327–51. {{doi|10.1016/S1574-0005(02)03025-4}}.</ref>

<ref name=r6>From ''The New Palgrave Dictionary of Economics'' (2008), 2nd Edition: <br />&nbsp;&nbsp; • [[Faruk Gul]]. "behavioural economics and game theory." [http://www.dictionaryofeconomics.com/article?id=pde2008_G000210&q=Behavioral%20economics%20&topicid=&result_number=2 Abstract.]<br />&nbsp;&nbsp; • [[Colin F. Camerer]]. "behavioral game theory." [http://www.dictionaryofeconomics.com/article?id=pde2008_B000302&q=Behavioral%20economics%20&topicid=&result_number=13 Abstract.] {{webarchive |url=https://web.archive.org/web/20111123034346/http://www.dictionaryofeconomics.com/article?id=pde2008_B000302&q=Behavioral%20economics%20&topicid=&result_number=13 |date=November 23, 2011 }}<br />&nbsp;&nbsp; • _____ (1997). "Progress in Behavioral Game Theory," ''Journal of Economic Perspectives'', 11(4), p. 172, pp. [http://authors.library.caltech.edu/22122/1/2138470%5B1%5D.pdf 167–88].<br />&nbsp;&nbsp; • _____ (2003). ''Behavioral Game Theory'', Princeton. [http://press.princeton.edu/chapters/i7517.html Description], [https://books.google.com/books?id=cr_Xg7cRvdcC&pg=PR7 preview] ([ctrl]+), and ch. 1 [http://press.princeton.edu/chapters/i7517.pdf link].<br />&nbsp;&nbsp; • _____, [[George Loewenstein]], and [[Matthew Rabin]], ed. (2003). ''Advances in Behavioral Economics'', Princeton. 1986–2003 papers. [http://press.princeton.edu/titles/8437.html Description], [https://books.google.com/books?id=sA4jJOjwCW4C&pg=PR7 contents], and [https://books.google.com/books?id=sA4jJOjwCW4C&pg=PR7 preview].<br />&nbsp;&nbsp; • [[Drew Fudenberg]] (2006). "Advancing Beyond ''Advances in Behavioral Economics''," ''Journal of Economic Literature'', 44(3), pp. 694–711 {{JSTOR|30032349}}.</ref>

<ref name=r7>• Eric Rasmusen (2007). ''Games and Information'', 4th ed. [http://www.wiley.com/WileyCDA/WileyTitle/productCd-EHEP001009.html Description] and [https://books.google.com/books?id=5XEMuJwnBmUC&pg=PR5 chapter-preview.]<br />&nbsp;&nbsp; • [[David M. Kreps]] (1990). ''Game Theory and Economic Modelling''. [http://econpapers.repec.org/bookchap/oxpobooks/9780198283812.htm Description.]<br />&nbsp;&nbsp; • R. Aumann and S. Hart, ed. (1992, 2002). ''Handbook of Game Theory with Economic Applications'' v. 1, [http://www.sciencedirect.com/science/handbooks/15740005/1 ch. 3–6] and v. 3, [http://www.sciencedirect.com/science/article/pii/S1574000502030060 ch. 43].</ref>

<ref name=r8>• [[Jean Tirole]] (1988). ''The Theory of Industrial Organization'', MIT Press. [https://books.google.com/books?id=HIjsF0XONF8C Description] and chapter-preview links, pp. [https://books.google.com/books?id=HIjsF0XONF8C&pg=PR7 vii–ix], "General Organization," pp. [https://books.google.com/books?id=HIjsF0XONF8C&dq=find&pg=PA5 5–6], and "Non-Cooperative Game Theory: A User's Guide Manual,' " ch. 11, pp. [https://books.google.com/books?id=HIjsF0XONF8C&dq=find&pg=PA423 423–59].<br />&nbsp;&nbsp; • Kyle Bagwell and Asher Wolinsky (2002). "Game theory and Industrial Organization," ch. 49, ''Handbook of Game Theory with Economic Applications'',
v. 3, pp. [http://www.sciencedirect.com/science/article/pii/S1574000502030126 1851–1895].<br />&nbsp;&nbsp; • Martin Shubik (1959). ''Strategy and Market Structure: Competition, Oligopoly, and the Theory of Games'', Wiley. [http://devirevues.demo.inist.fr/handle/2042/29380 Description] and review [https://www.jstor.org/pss/40434883 extract].<br />&nbsp;&nbsp; • _____ with Richard Levitan (1980). ''Market Structure and Behavior'', Harvard University Press. Review [https://www.jstor.org/pss/2232276 extract]. {{webarchive |url=https://web.archive.org/web/20100315131945/http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&tid=8224 |date=15 March 2010 }}</ref>

<ref name=r9>• Martin Shubik (1981). "Game Theory Models and Methods in Political Economy," in ''Handbook of Mathematical Economics'', v. 1, pp. 285–330 {{doi|10.1016/S1573-4382(81)01011-4}}.<br />&nbsp;&nbsp; •_____ (1987). ''A Game-Theoretic Approach to Political Economy''. MIT Press. [http://mitpress.mit.edu/catalog/item/default.asp?tid=5086&ttype=2 Description]. {{webarchive |url=https://web.archive.org/web/20110629151809/http://mitpress.mit.edu/catalog/item/default.asp?tid=5086&ttype=2 |date=29 June 2011 }}</ref>
<ref name=r10>• Martin Shubik (1978). "Game Theory: Economic Applications," in W. Kruskal and J.M. Tanur, ed., ''International Encyclopedia of Statistics'', v. 2, pp.&nbsp;372–78.<br />&nbsp;&nbsp; • Robert Aumann and [[Sergiu Hart]], ed. ''Handbook of Game Theory with Economic Applications'' (scrollable to chapter-outline or abstract links):
:1992. [http://www.sciencedirect.com/science/handbooks/15740005/1 v. 1]; 1994. [http://www.sciencedirect.com/science/handbooks/15740005/2 v. 2]; 2002. [http://www.sciencedirect.com/science/handbooks/15740005/3 v. 3.]</ref>

<ref name="GT-A-E-00">N. Agarwal and P. Zeephongsekul. [http://www.mssanz.org.au/modsim2011/D6/agarwal.pdf Psychological Pricing in Mergers & Acquisitions using Game Theory], School of Mathematics and Geospatial Sciences, RMIT University, Melbourne. 19th International Congress on Modelling and Simulation, 12–16 December 2011</ref>
}}

==External links==
* {{commonscat-inline| Competitions}}
{{wiktionary|one-upmanship}}

{{Narcissism}} 

[[Category:Competition| ]]
[[Category:Human behavior]]
[[Category:Human activities]]