Equity theory
Another economic theory
Opposes SET
Minmax principle is still important, but also accounts for peoples’ need for equity in a
relationship.
Equity = fairness
EQUITY vs EQUALITY:
Walster et al said that equity = both partners’ level of profit (rewards minus costs) is roughly the same. -
this is NOT EQUALITY (where levels of both costs and rewards must be the same)
All about the ratio of rewards to costs
These may be different rewards and costs between partners, however the overall profit is
similar
Perceived equity = satisfaction
INEQUITY:
Lack of equity = one partner overbenefitting and the other underbenefitting
resulting in dissatisfaction - anger, resentment, hostility etc for the underbenefitted, and guilt,
discomfort and shame for the overbenefitted.
Greater perceived inequity = greater dissatisfaction – strong correlation
Changes in perceived equity = over time perceived equity can decrease
Dealing with inequity –
1. If the relationship is salvageable, the underbenefitted partner will try to correct the inequity e.g.
encouraging overbenefitting partner to do more
2. OR the underbenefitted partner may just accept this high proportion of costs as the norm – e.g.
thoughtlessness or abuse and change this to be their perception of equity
EVALUATION
P: supporting research
E: includes studies of real-life relationships supporting equity theory to be more VALID than SET
Another economic theory
Opposes SET
Minmax principle is still important, but also accounts for peoples’ need for equity in a
relationship.
Equity = fairness
EQUITY vs EQUALITY:
Walster et al said that equity = both partners’ level of profit (rewards minus costs) is roughly the same. -
this is NOT EQUALITY (where levels of both costs and rewards must be the same)
All about the ratio of rewards to costs
These may be different rewards and costs between partners, however the overall profit is
similar
Perceived equity = satisfaction
INEQUITY:
Lack of equity = one partner overbenefitting and the other underbenefitting
resulting in dissatisfaction - anger, resentment, hostility etc for the underbenefitted, and guilt,
discomfort and shame for the overbenefitted.
Greater perceived inequity = greater dissatisfaction – strong correlation
Changes in perceived equity = over time perceived equity can decrease
Dealing with inequity –
1. If the relationship is salvageable, the underbenefitted partner will try to correct the inequity e.g.
encouraging overbenefitting partner to do more
2. OR the underbenefitted partner may just accept this high proportion of costs as the norm – e.g.
thoughtlessness or abuse and change this to be their perception of equity
EVALUATION
P: supporting research
E: includes studies of real-life relationships supporting equity theory to be more VALID than SET
