Market Competition

Competition is the rivalry of two or more parties over something. Competition occurs naturally between living organisms which coexist in an environment with limited resources. For example, animals compete over water supplies, food, and mates. In addition, humans compete for recognition, wealth and entertainment.

Competition can be remote, as in a free throw contest, or antagonistic, as in a standard basketball game. These contests are similar, but in the first one players are isolated from each other, while in the second one they are able to interfere with the performance of their competitors.

Competition gives incentives for self improvement. If two watchmakers are competing for business, they will lower their prices and improve their products to increase their sales. If birds compete for a limited water supply during a drought, the more suited birds will survive to reproduce and improve the population.

Rivals will often refer to their competitors as "the competition", and the term competition can also be used as to refer to a contest or tournament.

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Market Competitionl".