ETYM Latin competition. Related to Compete.
In ecology, the interaction between two or more organisms, or groups of organisms (for example, species), that use a common resource which is in short supply. Competition invariably results in a reduction in the numbers of one or both competitors, and in evolution contributes both to the decline of certain species and to the evolution of adaptations.
Thus plants may compete with each other for sunlight, or nutrients from the soil, while animals may compete among themselves for food, water, or refuge.
1. A business relation in which two parties compete to gain customers.
2. The act of competing as for profit or a prize; SYN. contention, rivalry.
In economics, rivalry in the marketplace between different business organizations, usually competition for custom between those who have the same commodities to dispose of. Firms can make their products competitive in price, quality, availability, and delivery dates, for example, or compete through advertising.
In a market where perfect competition is operating, it is assumed that all companies produce identical products and compete only on price. In markets characterized by an oligopoly and other forms of imperfect competition, goods are branded and there is much more emphasis on nonprice competition such as advertising. In a monopoly, where there is only one producer, there is no competition. Governments attempt to increase competition through competition policy.