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According to the dictionary, "competition" was not first used in 1605.  What conclusion might an historian draw from that simple observation?  Shakespeare had completed nearly all his plays by then, and a search of all of Shakespeare's works reveals that he never used the word, not even once.<ref>http://www.opensourceshakespeare.org/</ref>  Imagine that!

According to the dictionary, "competition" was not first used in 1605.  What conclusion might an historian draw from that simple observation?  Shakespeare had completed nearly all his plays by then, and a search of all of Shakespeare's works reveals that he never used the word, not even once.<ref>http://www.opensourceshakespeare.org/</ref>  Imagine that!

Leonardo da Vinci competed with Michelangelo, and the world benefited from their achievements.  In math and physics, Isaac Newton competed with Leibniz and a river of accomplishments flowed.  Sports rivalries are famous also for bringing out the best in each side.

Leonardo da Vinci competed with Michelangelo, and the world benefited from their achievements.  In math and physics, Isaac Newton competed with Gottfried Leibniz and a wellspring of accomplishments flowed.  Sports rivalries are famous also for bringing out the best in each side.

In business, it is the competition that brings out the best service, highest quality goods, and lowest prices.  Wal-Mart competes with Target and K-Mart.  Federal Express competes with UPS for shipping services.  Phone companies compete with either for cell phones and home service.  Television stations compete with each other.  Fox News competes with CNN.  Politicians compete with each other to win elections.  The dictionary definition of the "free market," which was first used in 1907, is "an economic market operating by free ''competition''."<ref>Merriam-Webster's Collegiate Dictionary (10th Ed. 1994).</ref>

In business, it is the competition that brings out the best service, highest quality goods, and lowest prices.  Wal-Mart competes with Target and K-Mart.  Federal Express competes with UPS for shipping services.  Phone companies compete with either for cell phones and home service.  Television stations compete with each other.  Fox News competes with CNN.  Politicians compete with each other to win elections.  The dictionary definition of the "free market," which was first used in 1907, is "an economic market operating by free ''competition''."<ref>Merriam-Webster's Collegiate Dictionary (10th Ed. 1994).</ref>

We all think we know what "competition" is, but can we define it precisely?  Here's one attempt:  "competition is the rivalry by people or companies for achievement, success, customers, attention or praise."  Not all competition is good: competition for praise could land the winner in the pitfall set forth in the Bible:  "and the first shall be last, and the last shall be first!"

We all think we know what "competition" is, but can we define it precisely?  Here's one attempt:  "competition is the rivalry by people or companies for achievement, success, customers, attention or praise."  We could define competition in other ways, by using other powerful terms developed in this course. For example, we could define competition in terms of efficiency:  "competition is the process that most efficiently identifies the best in something."

But competition for customers is something we like, particularly as a customer.  It means companies will be constantly trying to offer a lower price and better deal than their rivals.  That saves us, as customers, money, and allows us to obtain better goods and services.  Without the competition, we would be stuck with companies that charge as much as they like, and provide as poor quality goods and services as they want.  Competition rewards hard work; the lack of competition encourages laziness.

When wer are a customer, we like competition to attract our spending money.  Competition means companies will be constantly trying to offer a lower price and better deal than their rivals.  That saves us, as customers, money, and allows us to obtain better goods and services.  Without the competition, we would be stuck with companies that charge as much as they like, and provide as poor quality goods and services as they want.  Competition rewards hard work; the lack of competition encourages laziness.

The economic definition of competition should include rivalry for resources in addition to customers, as companies can compete with each other for workers too.  So let's define competition in economics as the "rivalry for goods, services or resources among different buyers or sellers."  Perhaps you can improve on that definition.

The economic definition of competition should include rivalry for resources in addition to customers, as companies can compete with each other for workers too.  So let's define competition in economics as the "rivalry for goods, services or resources among different buyers or sellers."  Perhaps you can improve on that definition.

But wait, you say, there is only one NFL.  It looks like there is perfect competition ''within'' the NFL, but there is no other league that has perfect competition with the NFL.  That is true:  the NFL itself has little or no competition.  There was a USFL that tried to compete against it many years ago, but it failed.  In the 1960s, there was an "AFL" that did successfully compete against the NFL, and they merged to form what we call the NFL today.

But wait, you say, there is only one NFL.  It looks like there is perfect competition ''within'' the NFL, but there is no other league that has perfect competition with the NFL.  That is true:  the NFL itself has little or no competition.  There was a USFL that tried to compete against it many years ago, but it failed.  In the 1960s, there was an "AFL" that did successfully compete against the NFL, and they merged to form what we call the NFL today.

== Competition and Innovation ==

== Competition and Innovation ==

In public schools, as students wear unattractive clothing like Goth it tends to cause other people to dress worse; as students start to goof off and stop working it becomes contagious and others start to imitate them.  Again, the "bad" drives out the "good".

In public schools, as students wear unattractive clothing like Goth it tends to cause other people to dress worse; as students start to goof off and stop working it becomes contagious and others start to imitate them.  Again, the "bad" drives out the "good".

Even on a personal level, <>

Even on a personal level, the "bad" can drive out the "good".  Watch television a while and you may find that your mind becomes sluggish and dull, with a poor attention span.  The "bad" of television drives out the "good" in your mind.  Spend the same amount of time reading the Bible, and you may discover that your mind becomes sharp and quick and focused.  Many great minds, such as Isaac Newton, read the Bible daily and found it brought their level of thinking to new heights.  Does the "good" of the Bible drive out the "bad"?

Once we realize this, it becomes possible to anticipate and correct it.  The "bad" can be prohibited, excluded, or stopped immediately as it occurs.  Better yet, if there is effort can the "good" drive out the "bad"?

Once we realize that the "bad" drives out the "good", it becomes possible to anticipate and correct it.  The "bad" can be prohibited, excluded, or stopped immediately as it occurs.  Better yet, can the "good" drive out the "bad"?

== Is the Converse of Gresham's Law True? ==

== Is the Converse of Gresham's Law True? ==

The converse of Gresham's Law would be this:  the "good" drives out the "bad".  Is it true?

The converse of Gresham's Law would be this:  the "good" drives out the "bad".  Is it true?

 

<more>

 

 

<discuss [[Gresham's Law]], and ask if good discussion can drive out bad?  E.g., start discussing the Bible and watch atheists disappear.>

== Exam Tips ==

== Exam Tips ==