Equity theory

• This is another economic theory which developed in response to a significant criticism of social exchange theory. Maximising rewards and minimising costs are important, but SET fails to take into account the need most people have for equity in a relationship. The term equity means fairness.
• Walster et al [1978]- 

  • What matters most with equity is that both partners level of profit is roughly the same 
  • This is not the same as equality where levels of costs and rewards have to be the same for each partner 
  • When there is a lack of equity, then one partner over benefits and the other under benefits from the relationship, and this causes dissatisfaction and unhappiness
• According to the equity theory, it's not the size or amount of the rewards and costs that matters; its the ratio of the two to each other. So if one partner puts a lot into the relationship but at the same time gets a lot out of it, then that will seem fair enough.
• Problems arise when one partner puts a great deal into the relationship but gets little form it. A partner who is the subject of inequity will become distressed and dissatisfied with the relationship if this state of affairs continues for long enough. The greater the perceived inequity, the greater the dissatisfaction. Equity theory predicts a strong correlation between the two. This applies to both the overbenefitted and the underbenefitted partner to the extent that they both perceive the inequity.
• Changes in perceived equity: 

  • What makes us most dissatisfied ism a change in the level of perceived equity as time goes on
• Dealing with inequity- 

  • The under - benefitted partner will work hard to make the relationship more equitable as long as they believe  its possible to do so and that the relationship is salvageable
  • The more unfair the relationship feels, the harder they will work to restore equity
  • On the other hand, another possible outcome is a cognitive rather than behavioural one. They will revise their perceptions of rewards and costs so that the relationship is. More equitable to them, even if nothing actually changes. What was once seen as  definitely a cost is now accepted as the norm.
• Utne et al [1984]- 

  • Carried out a survey of 118 recently married couples, measuring equity with two self report scales 
  • The husbands and wives were aged between 16 and 45 years old, and had been together for more than two years before marrying 
  • The researchers found that couples who considered their relationship equitable were more satisfied than those who saw themselves as overbenefitting or underbenefitting 
  • This research confirms a central prediction of equity theory, increasing to validity as an explanation of romantic relationships
• Equity theory assumes that the need for equity is a universal feature of romantic relationship across all cultures
• Aumer - Ryan et al- found that there are cultural differences in the link between equity and satisfaction. The researchers compared couples in a collectivistic culture and those in an individualistic culture. Couples from an individualistic culture considered their relationships to be most satisfying when the relationship was equitable, whereas partners in the collectivistic culture were most satisfied when they were overbenefitting. This was true of both men and women
• Individual differences: 

  • Not all partners in romantic relationships are concerned about achieving equity.
• • Huseman et al [1987] suggest that some people are less sensitive to equity than others. They describe some partners as benevolents, who are prepared to contribute more to the relationship than they get out of it. Others are entitled who believe they deserve to be over benefited and accept it without feeling distressed or guilty. 
  • This shows that equity is not necessarily a global feature of all romantic relationships and, contrary to claims of the theory, is certainly not a universal law of social interaction.
• Types of relationships: 

  • Clark and MIlls [2011]- concluded that we should distinguish between different types of relationships. Research studies strongly support the idea that equity plays a central role in casual friendships, business / work relationships and acquaintances. 
  • But the evidence that equity is important in romantic relationships is much more mixed, many of  these studies have questioned the assumptions and predictions of equity theory. Such as the link between equity and satisfaction. 
• Some research studies fail to support predictions made by equity theory. For instance, the theory claims that satisfying romantic relationships should become more equitable over time
• Berg and McQuinn [1986] found that equity did not increase in their longitudinal study of dating couples. Equity theory also did not distinguish between those relationships which ended and those which continued, other variables being significantly more important.. One being self disclosure