Love, involving both feelings and behavior, can be ana­lyzed on the basis of economic principles. Decisions are often made on the basis of fuzzy perceptions of value, inadequate information, intense physiological inputs, unrealistic expec­tations, and poor judgment. Gains and losses in love typically do not involve money, but rather an exchange of emotions, rewarding experiences, and satisfying communications.

Relationships that provide greater rewards will last longer. In intimate relationships, rewards consist of companionship, emotional support, and comfort in times of stress. There is a sense of consistency. Your boyfriend or girlfriend is someone you have learned you can count on when you have had a bad day at school or a fight with a friend. Costs are judged in terms of the time it takes to maintain the relationship, conflicts that may occur, and compromises and sacrifices that may be necessary to maintain the relationship. While consistency-one of the rewards of a relationship-is initially satisfying, it also brings a certain loss of freedom. It is assumed that you will not initiate another relationship with someone else. Maintaining the relationship may mean giving up some time spent in the company of friends. The most satisfying relationships, though, achieve a healthy balance. The benefits and cost to one person in the relationship should roughly equal the benefits and costs to the other.

In all relationships, success is based on the recognition of one’s own needs and sensitivity in relation to what the other person genuinely is able and willing to provide. The willingness to engage in a love relationship highlights a sense of priorities. These must be balanced with the priorities of the partner. There must be a willingness to give as well as receive, and to make compromises. One must believe that rewards exceed those that may be found elsewhere. As relationships mature, incentives for each partner may change. New balances must be worked out or the relationship becomes strained to the point of rupture.