Equity theory

• Equity is the balance of rewards and costs, where rewards are maximised and costs are minimised. It is about fairness, and it is not the same as equality.
• Equity theory assumes people will try to ensure their relationship is fair and may leave a relationship if they perceive unfairness.
• If someone gives a great deal but receive little in return may perceive inequity. People who receive a great deal but give little in return may also perceive inequity and become dissatisfied. The greater the inequity, the greater the dissatisfaction. What is considered fair is each partner's subjective judgements of their inputs and outputs.
• The theory proposes an equitable relationship is one in which a partner's benefits divided by costs are equal to the other person's benefits divided by costs. To restore fairness people may change how much they put into a relationship, change the amount received or compare the relationship with our comparison level of alternatives.
• Equity can be seen as only applicable to short term relationships in wester cultures as it takes a rational economic approach and does not take emotions into account. In long term relationships, people may assume balance will happen over time so are less concerned for equity.
• It is difficult to see how relationships can be measured in a lab and research is low in mundane realism. It is also difficult to gain a valid measure of a person's subjective assessment of their inputs and benefits from their relationship as their judgement may vary day to day.