Competition can be used to REDUCE conflict. e.g. a high-flow multiple person activity like tennis/ping-pong/etc.. Mistakes by self or other are VERY frustrating and can lead to conflict esp. if not equally skilled. Competition turns that frustration into GOOOALLLL.
The downside is that no one actually improves and get stuck into wrong habit grooves since the heightened emotions of the competition carve the wrong techniques very deep into the muscle response.