Cooppetition is known as "a situation where competitors simultaneously cooperate and compete with each other." The reasoning behind firms that engage in coopetition lies in the concept of game theory. Sometimes it is more beneficial to cooperate with your competitor, than to just competing against him. The specific benefits as a result of cooperation can include:
- added value
- secure contacts
-improved productivity
- improved quality
- access to raw materials
- reduced risk
These forms of coopetition are a win-win situation because they create benefits for both firms and their consumers.

In the classical approach competition was always seen as the driving force behind commercial activity. Competition as desirable because it resulted in lower prices for the consumers and furthermore increased the level of innovation. Cooperation was seen as a form of collusion and served as a mean to reduce overall competition, maintaining prices, and moderating the innovation process. Today's legislation tends to favor competition and discourage cooperative activity to prevent monopolistic powers.

Obviously, not all coopetitive relationships are the same as they each have their own idiosyncrasies. A relationship is "cooperative dominant"when there is more cooperation that competition and a relationship is competitive dominant when there is more competition than cooperation. Reciprocal coopetition involves an equally cooperative and competitive relationship.
Multipolar competition: when other actors in a network (e.g., a parent company) determine cooperation and competition between two firms.
A third form of competition belongs to the category buyer-seller in direct competition, the firms are in direct competition in some aspect of their operations.
The final form is partners in competition. Inter-firm relationships would be included in this category if the firms were involved in a joint venture, a research consortium, or a licensing agreement.
Collusion due to cooperative and coopetitive practices is only actual collusion when the consumer is negatively affected by the cooperation. However, where firms cooperate not just to their mutual benefit but also to the benefit of the consumer, the relationship is not collusive.

The literature would suggest that coopetition produces superior performance, This is also highlighted by Kotzab and Teller (2003) they suggest that information and social exchange underpin economic exchange and gain.