-Proposed by Walster which addressed the limitations of social equity.
-It's an 'economic theory' (relationships which involve exchanges) which agrees with SET.
-They argue that the most satisfied and stable relationships are fair and equitable.
-Rewards received are proportionate to the costs you have invested. Equitable exchanges in relationship makes you feel satisfied.
Two types of inequitable exchanges

-Individual puts in high cost and receives low reward. They are dissatisfied as they are underbenefitting.
-Individual gets high reward and invests low costs (no time and little effort). They are dissatisfied and are over benefiting from these exchanges as may feel guilt and shame.
Inequitable exchanges
-The couple is motivated to restore equity and fairness as don't want either partner to be dissatisfied.
-Behavioural changes: decrease cost and increase reward of the under benefitting partner.
-Cognitive change: the individual changes the way they perceive cost and reward.