by Jurgen Brauer, October 2004
Copyright: J. Brauer. No reproduction without permission.

The news media are full of stories and images of competition, not only but especially with regard to the world of business, finance, and economics. Who has not heard of "cut-throat" competition among businesses? Who has not heard politicians shout that America's children and college students must learn to learn so as to be more competitive in this and the future world economy? The specter of competition permeates our society. Who has not heard of "reality-shows" where viewers weed out lackluster competitors? Who has not watched competitive sports with great prizes of money and reputation at stake? Competition surrounds us. We are embedded in it. Competition has taken on mythical qualities: it is both revered and feared.

It surely takes an economist to point out that the crux of competition lies in cooperation.

Thus it surely takes an economist to point out that the crux of competition lies in cooperation. Competition is a civilized activity, not a barbaric "cut-throat" endeavor. When I watch two chess players, I am more impressed that they play with each other than that they play against each other. To compete, they need to cooperate. To produce an exiting game, we need a twosome. When I watch Monday Night Football, I am more impressed with players' athleticism called forth during the game than I am with the effort called forth during practice. We reach for the best when we are challenged; to be challenged requires a party to do the challenging. Tens of thousands of fans attend the game; not the practice. It is the performance that yields the desired good or service: we loath piano practice, but we love piano competition not because it is cut-throat but because it elates and enriches us.

Competition requires cooperation. When I observe a company bring an extraordinary new product to market, I am more impressed by the cooperation required within the company than by the competition thereby unleashed in the market. It challenges the competitive partner to do better as well. This enriches us all. We tend to view rush-hour traffic as a competitive situation, and "road-rage" is an expression of that view. But I am less impressed by motorists' occasional accidents than by our ability to jointly, quietly, even magically cooperate, and thereby coordinate traffic flows. This generally goes unremarked but is a much more numerous and impressive achievement than are the accidents. What needs explaining is not the accidents, the cut-throat competition; what needs explaining is the cooperation that avoids them, what needs explaining is the civilized "coop-petition" on the road that gets each of us to where each of us wishes to go.

Go to a grocery store and observe the check-out lanes. You never see a very long lane next to a very short lane. As we compete to get out of the store, we constantly search for short-cuts. People swiftly move themselves into lanes that promise the shortest overall wait-time for them. But as each one person competes to minimize wait-time, we jointly – cooperatively, and as if guided by an "invisible hand" – minimize the total wait-time as well. This leaves us all better off.

One can hardly think of something less self-less than competition!

Consider what happens in the absence of cooperation and competition. If I did not have to cooperate at the workplace to earn my bread and livelihood, why work at all? Why teach, why research and write scholarly articles, why give public lectures, why sit on innumerable university committees? The incentive of public recognition, even of promotion and merit-based salary, induces me to reach higher, to give more of myself to others. Without that incentive, the quality of my work would fall precipitously, and so would yours. True, if I am paid for doing shoddy work, that's good for me. But if you are paid for doing shoddy work, I am the poorer for it. I want everyone to compete, for that is good for me. But what I require for my own good of you, surely you will require for your own good of me. This requires cooperation. Without it there is no competition, and no good life either. Competition is good since because of it each contributes to the lives of others. And what others contribute is good for me. One can hardly think of something less self-less than competition!

We have learned at least three great lessons about competition. First, everyone must play. Second, whoever stumbles must be helped up. Third, the game must never end.

To be sure, competition, like democracy, that other great accomplishment of civilization, does have its warts and wrinkles. These can be worked out: as with a good bottle of wine, aging helps. Experience helps. In particular, we have learned at least three great lessons. First, everyone must play. Second, whoever stumbles must be helped up. Third, the game must never end.

Consider the first lesson. If we protect some workers from national or international competition, we cuddle them; we contribute to their lives, even as they contribute less to ours. This won't do. We agree that children ought not to participate in economic competition until they come of age; we also agree that beyond a certain age, people who have made their contribution to us may retire from the game. But in-between, everyone needs to contribute for the betterment of all. The second lesson says that if a runner stumbles, he needs to be helped up to keep running for the good of all. A runner that falls becomes a liability who slows down the others (they need to transfer resources without receiving any in return). Hence economists' insistence that society must provide education, health, and personal security to all, so that all may run from strength. Third, if any one were to "win" the competitive game – for instance by monopolizing a market – that person's or company's continuous contribution to society's betterment will stop, or at the least be impeded. Society loses benefits to be had; therefore society needs to outlaw monopolization of markets so that the competitive race is run continuously without interruption.

Competition is not to be feared. It requires but an honest day's work, the best I have to offer you; and the best you have to offer me.