Game theory's star child, the prisoner's dilemma, also shows this principle quite nicely.
As long as you plan on never working with that person again it is in your best interest to screw them over. If you plan on working with them indefiniately then the best known strategy is to treat them as they treat you, and to start off on a good foot.
In real life, as opposed to thought experiments, it's hard to tell when, where, and in what circumstances you will meet someone again. I don't think it's ever in your best interest to screw anyone over.
We exist in a web of relationships with membership in overlapping but distinct communities. As entrepreneurs we can be seen as agents of chaos by the status quo but our aim is innovation that leaves society on balance better off.
Of course we have to make a profit for our businesses to continue, but there are other gains that come from entrepreneurship beyond the financial that lead us to invest in our employees education, to invest in our communities and to “leave a little money on the table” when dealing with partners and suppliers in the interest of good will and future relationships.
Business is situated in community and a social context: a good reputation as fair dealer committed to the values of the community, as evidenced by actual kindness and charity will create more value in the long run than treating every transaction as the last one you will ever do with the other party.
As long as you plan on never working with that person again it is in your best interest to screw them over. If you plan on working with them indefiniately then the best known strategy is to treat them as they treat you, and to start off on a good foot.
http://en.wikipedia.org/wiki/Tit_for_tat