Appetizer

Competition occurs when people or organizations reach for the same prize or goal at the same time. The prize might be a customer, a job, a grade, or an eBay item. When you think about it, there is little in life for which we don't compete. We must compete for nearly everything because nearly every resource on earth is limited, that is, every resource is scarce. Competition is therefore an inevitable result of the existence of scarcity, not a political or economic idea invented by capitalists.

Many economists consider competition to be a form of cooperation that benefits a society upholding individual liberty and property rights through the rule of law.

Some are troubled by competition. They consider competition in almost evil terms as a breeder of greed, insensitivity and jealousy, and maybe most troubling, competition inevitably results in a loser. However, losing teaches powerful, positive lessons, and nudges people to pursue things they might be more successful at. Competition benefits consumers, the economy, and society in many more indispensable ways. For example, competition for buyers motivates sellers to offer low prices; competition for jobs motivates people to work more productively; and competition for workers motivates employers to treat their employees well. The fact is, when people compete to do something, people do it better.