An investigation was conducted with 20 cohabiting dyads (total N=40) to assess the implications of exchange orientation (EO) on dyadic functioning. EO was defined as the degree to which individual members of the dyad seek reciprocity from their partner. Most individuals tend to be quite sensitive to their own work input within the dyad, but are less sensitive to the contribution of their partner. This perceptual imbalance becomes a problem only if the individual believes that a 50-50 "work" or "privileges" approach is necessary for his/her satisfaction within the dyadic relationship. As predicted, the results demonstrated an inverse relationship between exchanged orientation and dyadic functioning. Although EO was found to be a more critical variable for females in their dyadic functioning, high EO for both sexes proved to be inimical to pair commitment. Additional analyses demonstrated that for females, interactions with friendship networks tended to enhance dyadic functioning, while the reverse was true for males. Differential effects for males and females were interpreted in terms of traditional role patterns and expectations. (Author)