Balance Theory

Business, Legal & Accounting Glossary

Definition: Balance Theory


Balance Theory


Full Definition of Balance Theory


Balance theory states that the market will tend toward equilibrium. Fritz Heider proposed that people will attempt to maintain a psychological balance and form relationships that balance out their likes and dislikes. For example if Person A likes a celebrity and the celebrity likes a product but Person A originally disliked the product, then Person A is likely to end up increasing his enjoyment of the product or decreasing his liking of the celebrity or both. All these options create equilibrium.


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Definition Sources


Definitions for Balance Theory are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.