The main objective of the research was to find out differences between effective and ineffective competition. The study include a review of authors before A. Smith, classic works, static, dynamic, evolutionary approaches, theory of games and others. Based on the findings we give an own definition of competition in term of dynamic self-organization of individuals through bargaining in a complex social-economic system. In the theoretical part of the study we showed a logical development of understanding the role of competition from necessity of perceived fight to the efficient, safe and compromise exchange of the goods in base of accepted price ratios. We used the game theory as a key model of competition. It allowed us to prove some existence of positive and negative effects. The study showed a role of uncertainty as a main problem to overcome through competition and endogeneity of the competitive conditions, which depends from the externalities, path dependence and network effects. Consistent to earlier research the study supported the hypothesis that effective competition occurs without conflict, that is possible because of the frequency of the bargaining and asset specificity.