Competition is a trait of human nature and in all nature. People will always compare themselves according to what those around them have achieved. Even animals compete with one another for food, territory, and the opposite sex. There is this need to have a "pecking order" to determine who is #1. Competition does not have to be "encouraged" it is a natural part of life.
Every week in the U.S. it is announced which singers have the #1 song or CD, which movie is #1 at the box office. These things really shouldn't matter to the rank and file customer. The same is true of the New York Times Bestseller list, J.D. Powers Consumer Reports results informs us which products are best or worst.
These days before most consumers make a purchase they want to read reviews of competitive products prior to making a final decision. Everyone wants the BEST that they can afford or acquire. In theory true competition helps to keep prices lower than if there were no competition.
Many years ago someone suggested a university drop their grading system and simply issue pass/failure. Essentially someone who scored 100% correct on a test and someone who got 60% would both get a grade of "pass". The students were against it!
In the eyes of most people (equality = mediocrity) or average. The goal for most people is not be "equal" but rather to have an "equal opportunity" to become "special".