Using options to compete

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Consequences[ edit ] Competition can have both beneficial and detrimental effects. Many evolutionary biologists view inter-species and intra-species competition as the driving force of adaptationand ultimately of evolution.

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'. Some social Darwinists 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 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.

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Biology and ecology[ edit ] Main article: Competition biology Competition within, between, and among species is one of the most important forces in biology, especially in the field of ecology. 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. 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 by character dislocation, for instance.

According to evolutionary theorythis 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 more larger factor than competition.

Game theory Game theory is "the study of mathematical models of conflict and cooperation between intelligent rational decision-makers.

Game theory is a major method used in mathematical economics and business for modeling competing behaviors of interacting agents. 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.

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Competition economics Merriam-Webster defines competition in business as "the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms". 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. However, competition may also lead to wasted duplicated effort and to increased costs and prices in some circumstances.

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