This paper argues that it is important to include the other party's payoff
in a competitor's utility (satisfaction) function. Examples of the impact a
re provided as well as implications for multi-stage games (competitions). A
sample of 200 provides empirical support for the critical role other party
results play in satisfaction, in particular the importance of relative pay
offs. Several implications emerge, including a parsimonious explanation for
the exponential pattern of shares in mature markets. (C) 2001 Elsevier Sci
ence B.V. All rights reserved.