Equity theory

Cards (5)

  • What does equity mean?
    A person’s perceived inputs and outputs
  • Equity as an economic theory?
    • SET (social exchange theory) says behaviour is a series of exchanges - benefit and cost
    • Equity theory says people strive to achieve fairness in their relationships
    • Any kind of inequity can make people feel distressed - true for both the giver and the receiver
  • What did Walster et al say about equity theory (1978)?
    People strive to achieve fairness in their relationships. Inequality has the potential to cause distress. This happens when one person gives a great deal and gets little in return (inequity). However the same is true for those who receive a great deal and give little in return.
  • What are Walster et Al’s 4 principles of equity theory?
    • Profit - rewards maximised, costs minimised
    • Distribution - trade-offs and compensations are negotiated to achieve fairness in a relationship
    • Dissatisfaction - the greater the degree of perceived unfairness in a relationship, the greater the sense of dissatisfaction
    • Realignment - if restoring equity is possible, maintenance will continue with attempts made to realign equity.
  • What is the perceived ratio of inputs and outputs?
    • Inequity doesnt necessarily mean inequality. Two individuals can put in variable amounts and still maintain equity. Likewise its not about the size or amount of rewards and costs, its the ratio of the two.
    • If one partner puts a lot in and gets a lot out of it, this will seem fair
    • This is because a person holds subjective vies on the relative inputs and outputs of themselves and their partner
    • If we fear inequity in our relationship we may try to change our inputs and outputs to restore equity.