Donald Lehmann

The Impact of Altruism and Envy of Competitive Behavior and Satisfaction

Abstract:
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 are 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 payoffs. Several implications emerge, including a parsimonious explanation for the exponential pattern of shares in mature markets.

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