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According to the equity theory of interpersonal relationships, a connection lasts as long as each party feels that the benefits outweigh the costs.
Hatfield's equity theory, which sees love as an extension of social exchange theory, is a theory of romantic relationships. If the advantages are nearly equal to the disadvantages, it implies that people are happy in their relationship.
The extension of the traditional exchange theory known as equity theory contends that rather than being significantly over or under profited by their trades, people are most content with partnerships in which they experience a substantially equal exchange of resources.
It matters because equity theory shows how to strike a balance between how much effort employees should put into their work and how they feel about it. The first area in the workplace where this can be tested revolves around fair pay. It is the duty of employers to pay workers fairly.
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