Competition doesn't work, and the reasons we believe it does are mostly wrong
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The key is to find a balance where there is progress but you aren't burning your resources to the point of impeding it. It's a fine line.
In a perfect world collaboration would be ideal but we have seen that people just stop trying after awhile and become free riders with only a few doing the majority of work. So in affect collaboration wastes a lot of potential effort by letting people ride it out.
Long term competition is the best way to move forward but it can't be the all out version where resources are wasted rather than used wisely where we try to win at what ever cost.