The impact of altruism and envy on competitive behavior and satisfaction

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.