A Field Study of Conflict in Psychological Exchange: The California Taxpayers' Revolt

The present research applied an exchange analysis to the confrontation between California renters and landlords after the passage of a property tax initiative (Proposition 13). The inability of renters to leave the exchange intensified perceived inequities. As a result, both parties sought solutions to perceived inequities by changing the existing relationship. As predicted, renters and landlords disagreed on the relative importance of exchange inputs and the actions needed to restore equity to their relationship. Relationships examined were consistent with a psychological contract in which renters were blocked from leaving. This interpretation suggests that changes in the intrinsic nature of the psychological contract may be needed to avoid future conflict.