Scarcity leads to competitive behavior

Competition is a natural outgrowth of scarcity and the desire of human beings to improve their conditions. Competition exists in every economy and every society. It exists both when goods are allocated by price in markets and when they are allocated by other means-political decision making, for example.
How goods are rationed influences what competitive techniques people will use to get them. When the rationing criterion is price, individuals will engage in income-generating activities that enhance their ability to pay the price needed to buy the goods and services they want. Thus, one benefit of using price as a rationing mechanism is that it encourages individuals to engage in the production of goods and services to generate income. In contrast, rationing on the basis of first-come, first-served encourages individuals to waste a substantial amount of time unproductively waiting in line, while rationing through the political process encourages individuals to waste time attempting to influence the political process.
Within a market setting, the competition that results from scarcity is an important ingredient in economic progress. Competition among business firms for customers results in newer, better, and less expensive goods and services. Competition between employers for workers results in higher wages, benefits, and better working conditions. Further, competition encourages discovery and innovation. two important sources of growth and higher living standards.