Contextual equivalence is the de facto standard notion of program equivalence. A key theorem is that contextual equivalence is an equational theory. Making contextual equivalence more intensional, for example taking into account the time cost of the computation, seems a natural refinement. Such a change, however, does not induce an equational theory, for an apparently essential reason: cost is not invariant under reduction.

In the paradigmatic case of the untyped λ-calculus, we introduce interaction equivalence. Inspired by game semantics, we observe the number of interaction steps between terms and contexts but -- crucially -- ignore their own internal steps. We prove that interaction equivalence is an equational theory and we characterize it as B, the well-known theory induced by Böhm tree equality. Ours is the first observational characterization of B obtained without enriching the discriminating power of contexts with extra features such as non-determinism. To prove our results, we develop interaction-based refinements of the Böhm-out technique and of intersection types. Joint work with Beniamino Accattoli, Giulio Manzonetto and Gabriele Vanoni.