Equity, Fairness, and Interpersonal Exchange

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Equity, Fairness, and Interpersonal Exchange
Lecture 5July 5, 2007
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Please answer the following question based on
your current relationship or your most recent
past relationship.

• Please think about all the things you put into
  your relationship compared to what you get out of
  it, and all the things your partner puts in
  compared to what he/she gets out of it, how does
  your relationship stack up?
• Read each of the following alternatives and
  choose the one that best describes how you feel
  in your relationship.
• 3 I am getting a much better deal than my
  partner
• 2 I am getting a moderately better deal than my
  partner
• 1 I am getting a slightly better deal than my
  partner
• 0 We are both getting an equally good or bad
  deal
• -1 My partner is getting a slightly better deal
  than I am
• -2 My partner is getting a moderately better
  deal than I am
• -3 My partner is getting a much better deal than
  I am

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Questions to consider.

• How do people determine if their relationships
  are worthwhile?
• What types of rewards and costs are derived from
  close relationships?
• Do we care whether things are fair?
• If so, how do we determine if things are fair?

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Social Exchange Theory

• Sociologist George Homans (1961 1974)
• Rules that determine how benefits are given and
  received in relationships (of all kinds)
• Economic model of human behavior
• People are sensitive to rewards and costs
• Marketplace maximize profits, minimize losses
• Profit (Outcome) rewards ? costs
• We want to interact with people who offer best
  profit

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Social Exchange Theory

• Five major propositions
• Social interactions are a process of exchange
  (tit-for-tat)
• Partners keep track of costs and rewards
• We are attracted to partners who provide most
  rewards
• People are motivated to maximize their profits
  (obtain greatest rewards for smallest cost)
• Behavior guided by
• norm of reciprocity to receive we must also
  give

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Social Exchange Theory

• Fundamental Premise

More rewards and fewer costs
More satisfying and endure longer
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Social Exchange Theory

• What are rewards and costs in relationships?
• Reward Any positive consequence anything of
  value that you gain anything desirable and
  welcome
• Cost Any negative consequence or loss anything
  undesirable and unwelcome
• Can be tangible or psychological/emotional
• Rewards and costs in the eye of the beholder
• No agreed upon price tag

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Social Exchange Theory

• Examples
• Rewards love, laughter, companionship,
  respect, support, sexual gratification,
  assistance w/household tasks, status, financial
  and other tangible resources
• Costs Time, loss of opportunities, conflict,
  stress, loss of esteem, disapproval, effort,
  compromises, uncertainty, frustration over
  partners imperfections, financial or other
  tangible resources

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Social Exchange Theory

• Factors that effect value of rewards and costs
• Principle of scarcity scare resources will be
  valued more
• e.g., men in a retirement community, a friend
  when youre lonely
• Principle of satiation value of repeated
  rewards will decrease
• e.g., first kiss valued much more than 100th one
• Principle of fatigue value of repeated costs
  will increase
• e.g., first favor is not too bad, but 10th favor
  gets on your nerves

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Social Exchange Theory

• How do people evaluate their outcomes?
• Is my relationship profitable?
• 1. Keep track of rewards and costs (accounting)
• Seldom done explicitly or systematically
• 2. Determine profit three sources of
  information
• Simple standard
• Comparison Level (CL)
• Comparison Level for Alternative (CLALT)

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Social Exchange Theory

• Is my relationship profitable?
• A. Simple Standard
• But, people dont just want profit, they want the
  best possible outcome.
• How do we know if we are getting the best
  possible?

Outcome (Profit) Rewards - Costs
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Interdependence Theory

• Interdependence Theory(Thibaut Kelley, 1959,
  1978 Kelley, 1979)
• Broader model of social exchange
• Two new concepts for understanding how people
  evaluate their outcomes
• Comparison Level (CL)
• Comparison Level for Alternatives (CLALT)

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Interdependence Theory

• B. Comparison Level
• Comparison Level (CL) what we expect and feel
  we deserve from our relationships
• Standard against which we judge our happinessor
  satisfaction

Satisfaction Outcome - CL
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Social Exchange Theory

• Comparison Level (CL)
• Each person has his/her own CL
• Based on prior experience, learning, personality
• High CL
• expect relationships to be rewarding
• low rewards unacceptable, disappointing
• Low CL
• expect relationships to be troublesome
• low rewards are acceptable, tolerable

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Social Exchange Theory

• C. Comparison Level for Alternatives
• Comparison Level (CLALT) what we realistically
  expect we could get in another relationship or
  situation
• Other alternatives currently available
• Includes other partners or no partner (being
  single)
• Standard against which we decide to stay or leave

Dependence Outcome - CLALT
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Social Exchange Theory

• Comparison Level for Alternatives
• Dependence degree to which we feel
  psychologically linked to our relationship
• Determines whether we are motivated to stay or
  leave
• Low CLALT more dependent on current
  relationship
• High CLALT less dependent on current
  relationship
• Dependence (motivation to sta) is not based
  solely on whether or not we are happy
• We will talk more about this when we discuss
  relationship commitment next week

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Evaluating Ones Outcomes

Outcome (Profit) Rewards - Costs
Satisfaction Outcome - CL
Dependence Outcome - CLALT
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Interdependence Theory
Your outcome
Happy, Stable
CL
CLALT
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Interdependence Theory
CL
Your outcome
Unhappy, Stable
CLALT
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Interdependence Theory
CLALT
Your outcome
Happy, but Unstable
CL
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Interdependence Theory
CL
Unhappy, Unstable
CLALT
Your outcome
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Equity Theory

• Extension of Social Exchange Theory (Adams, 1965
  Walster, Walster Berscheid, 1978)
• What is the norm that people follow when
  allocating rewards and judging the fairness of
  their outcomes?
• Concerned with fairness or distributive justice
• More complex than simply maximizing ones own
  profits
• Both partners outcomes/profits matter

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Equity Theory

• Three propositions
• Partners are concerned with fairness (taking both
  partners outcomes into account)
• Inequity causes distress
• Partners will take steps to restore equity

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Equity Theory

• Basic premise and assumptions
• People are motivated by self-interest
• But, other people have options too, so we must be
  fair in order to get along
• People feel most comfortable when they get
  roughly what they deserve, no more and no less
• We are concerned with fair distribution of
  rewards and costs

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Equity Theory

• How do we judge fairness?
• Two rules govern giving and receiving
• Equality rule
• Equity rule

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Equity Theory

• Equality rule partners should obtain equal
  rewards from the relationship

P1 rewards P2 rewards
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Equity Theory

• Equity rule ratio of rewards/costs should be
  proportional
• Our profits should be equal
• Partners should only get as much as they give
• If you give less, you should get less

P1 rewards/P1 costs P2 rewards/P2 costs
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Equity Theory

• Its the balance that counts
• P1 r/c P2
  r/c
• Equitable ? 80/100 40/50
• .80 for both
• Partners have equal relative profit
• Dont have to have same rewards, just same
  balance
• What you get with respect to what you put in

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Equity Theory

• P1 r/c P2 r/c
• Under-benefit for P1 ? 80/100
  45/50
• .80 for P1 but .90 for P2
• Partner 1 has less profit
• Notice that P1 has more rewards than P2 (80 vs.
  45), but less profit because P1 also has more
  costs (100 vs. 50)

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Equity Theory

• Over-benefit for P1 ? 80/100 20/50
  
• .80 for P1 but .40 for P2
• Partner 1 has more profit
• Notice that P1 has a more costs than P2 (100 vs.
  50), but more profit because P1 also has more
  rewards (80 vs. 20)

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Measuring Equity

• Please think about all the things you put into
  your relationship compared to what you get out of
  it, and all the things your partner puts in
  compared to what he/she gets out of it, how does
  your relationship stack up?
• 3 I am getting a much better deal than my
  partner
• 2 I am getting a moderately better deal than my
  partner
• 1 I am getting a slightly better deal than my
  partner
• 0 We are both getting an equally good or bad
  deal
• -1 My partner is getting a slightly better deal
  than I am
• -2 My partner is getting a moderately better
  deal than I am
• -3 My partner is getting a much better deal than
  I am

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Measuring Equity

• Subjective
• Partners dont always agree
• Should partners agree?
• What kind of psychological arithmetic are people
  doing? (What were you doing when you answered?)

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Research Findings from dating and married couples

• Equitable more satisfaction, intimacy,
  commitment, greater stability, less infidelity
• Both under- and over-benefit feel distressed
• Under-benefit anger, resentment, feel deprived,
  feel cheated, taken-advantage of
• Over-benefit guilt, discomfort
• Under-benefit is worse than over-benefit, but
  both are associated with low satisfaction

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Research Findings from dating and married couples

• Inequity is uncomfortable
• People will take steps to restore equity
• Restore actual equity
• Restore psychological equity
• Exit relationship

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Research Findings from dating and married couples

• Restore actual equity
• Alter inputs or outputs for self or partner
• Reduce own inputs, demand more outputs from
  partner
• Restore psychological equity
• Alter your subjective perceptions
• Believe P deserves more
• Change your CL (e.g., downward social comparison)
• Exit relationship
• Distance yourself from partner, have affair, end
  relationship

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Problems with Equity Theory

• Many studies find no link between equity and
  satisfaction in close relationships
• There are positive and negative consequences of
  equity
• Positive concern for fairness
• Negative score-keeping
• Is it beneficial to keep score? Can score-keeping
  damage relationships?
• Perhaps another rule for close relationships

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Problems with Equity Theory

• The key to a successful marriage is to give
  without measure.
• ? Larry Seidman, 1985