Link exchnage with your number competitor ? yes or no ?

[philooo]

I have the opportunity to exchange link with my number one competitor for the keyphrase 'widget games'

He is number one in google and I am in the top 10.

He is only dealing with 'widget games', while I have a much wider target. I am very interested in this keyphrase but as he is more specialized on this I wonder if that will benefit him more than me ?

In general, Should I exchange link with someone ranking higher than me ? ... or not ?

[cnvi]

If it benefits your end user, why not? Unless its a fierce competitor selling your widget for half the price you sell it for always get the link anytime its relevant and benefits your end user.

Try not to make linking decisions based on how you think its going to affect your site's search rankings.