The two sides of envy, destructive and competitive, give rise to qualitatively different equilibria, depending on … efforts to prevent destructive envy of the relatively poor. In the opposite case, the standard "keeping up with the Joneses … nature of these equilibria leads to starkingly contrasting effects of envy on economic performance. From welfare perspective …

patient bargainers that exhibit similar degrees of inequality aversion. Inequality-averse bargainers may perceive envy if … of their degree of envy. If guilt is weak, then the agreed split is tilted away from the Rubinstein division towards a … more unequal split. Envy and weak guilt have opposite effects on the bargaining outcome, and envy has a greater marginal …