Equity theory

• What is the equity theory?

  • Another economic theory developed in response to a criticism of the social exchange theory, which is that it fails to take into account the need for balance over profit in a relationship
• What is the role of equity?

  • Equity is fairness that people strive to achieve in their relationships, where both partners' level of profit is roughly the same
  • Walster et al. (1978) said that when there is a lack of perceived equity, one person ends up under-benefitting while the other over-benefits, which is a recipe for dissatisfaction and unhappiness
  • Under-benefitting partner is likely to feel greater dissatisfaction along with anger, hostility, resentment, etc.
  • Over-benefitting partner will likely feel shame, guilt, discomfort, etc.
• What is the difference between equity and equality?

  • Theory states that it isn't the size or amount of rewards and costs that matter but the ratio
  • Satisfying relationships are marked by negotiations to ensure equity and rewards are distributed fairly, not equally, between partners
• What are the consequences of inequity?

  • Changes in perceived equity -dissatisfaction arises when there is a change in the levels of perceived equity as time goes on
  • For example, giving more rewards may seem natural at the beginning of a relationship but feels unfair and less satisfying as the relationship continues
• How do people usually deal with inequity?

  • Under-benefitted partner will usually feel more motivated to make the relationship more equitable by communicating
  • Alternatively, they make may make a cognitive change - changing their mindset to adapt to their partners' behaviour so they will no longer see a cost as negative and therefore no longer feel dissatisfied
  • Likely to lead to low self-esteem, resentment, and dissatisfaction in the long-term
• What is one strength of the equity theory?

  • Research support: Utne et al (1984) measured equity in 118 recently married couples (been together for 2 years before marriage) with 2 self-report scales
  • Found that couples who considered their relationship equitable were more satisfied that those who saw themselves as either under or over-benefitting
  • Confirms that equity is linked with satisfaction on relationships, supporting the theory
• What is another strength of the equity theory?

  • Research support for equity changing over time: Schafer and Keith (1980) surveyed married couples who felt inequity in their marriages due to an unfair division of domestic responsibilities
  • Wives felt under-benefitted during child-rearing years and husbands over-benefitted
  • Equity and satisfaction were felt during the honeymoon and empty-nest stages, suggesting equity is important for the satisfaction of a relationship although it can change over the course of it
• What is one limitation of the equity theory?

  • Cultural differences: equity may be undervalued or perceived differently in cultures outside the US and Western Europe
  • Aumer-Ryan et al. (2006) found that couples from individualist cultures like the US considered their relationships most satisfying when they were equitable, but couples from collectivist cultures like Jamaica were most satisfied when they were over-benefitting
  • Suggests that the theory is limited as it can only be applied to some cultures as others vary in how fair they consider their relationships to be
• What is another limitation of the equity theory?

  • Gender differences: DeMaris et al. (2010) found that men and women aren't equally affected by inequity in relationships, as women tend to perceive themselves as more under-benefitted which leads to more dissatisfaction on their part
  • The fact that women inevitably invest more into relationships than men may make them more sensitive to injustices and inequity, limiting the theory as it is a form of beta bias for not considering social differences between the genders