We present a theory of cooperative-competitive intelligence (CCI), its measures, research program, and applications that stem from it. Within the framework of this theory, satisficing sub-optimal behavior is any behavior that does not promote a decrease in the prospective control of the functional action diversity/unpredictability (D/U) potential of the agent or team. This potential is defined as the entropy measure in multiple, context-dependent dimensions. We define the satisficing interval of behaviors as CCI. In order to manifest itself at individual or (...) team level, this capacity harnesses properties such as degeneracy, pleiotropy (pluri-potentiality), synergies, and metastability. Intelligence is embodied because intelligent behavior is deeply dependent on body functionalities, defined as entropy measures. We base our theory on three principles: (a) relativity of functional entropy/ information in agent (team)-environment systems, (b) tendency toward the satisficing level of D/U potential, and (c) tendency toward the non-decreasing D/U potential. The conjunction of these three principles provides existence of sub-optimal behaviors associated with CCI. First, we deal with the problem of how to reduce multidimensional behavior to a concept that accounts for the vast set of scenarios in which CCI is manifested. Secondly, we define and discuss the three interacting principles that underpin CCI behavior as well as providing an outline for a future CCI research program supported by agent￾based modeling and empirical research. Finally, we provide some preliminary practical issues that stem from the theory. (shrink)