Competition (economics)

In economics, the word competition means that there are at least two competitors (¨players¨) who want to get a share of a market. The market is divided between all the economic players; this means that if a player gets a higher market share, another player will get a smaller share of the market. In his work, The Wealth of Nations, Adam Smith says that all players uses the resources they have so that they will get the most profit from these resources. According to Smith, this encourages efficiency. Game theory looks at competition, from a mathematical point of view.