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Competition

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).[1] 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.

"Competitor" redirects here. For the ship, see Competitor (1813 ship).

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. Humans usually compete for food and mates, though when these needs are met deep rivalries often arise over the pursuit of wealth, power, prestige, and fame when in a static, repetitive, or unchanging environment.[2] Competition is a major tenet of 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.[3] 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".[4] 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 psychologists, 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. Sociologists, meanwhile, study the effects of competition on society as a whole. Additionally, anthropologists study the history and prehistory of competition in various cultures. They also investigate how competition manifested itself in various cultural settings in the past, and how competition has developed over time.

The most narrow form is direct competition (also called "category competition" or "brand competition"), where 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.

products

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 might want to spend their available 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".

consumer

Asymmetric competition

Biological interaction

Competition regulator

Competitor analysis

Conflict of interest

Cooperation

Ecological model of competition

Monopolistic competition

Non-zero-sum game

Planned economy

Prisoner's dilemma

Sharing

Student competitions

Win-win game

Zero-profit condition

Zero-sum