Social Exchange Theory Day, Mary gives Steve a keychain she purchased

Within the area of social psychology, Social from a dollar store. In this simple example of
Exchange Theory was developed to explain exchanges, Steve made a large investment of
communication and interaction, as well as the time and money, but the benefits received are
factors governing interaction in humans. This subjectively small. For Steve, the outcome will
theory has had tremendous impact on social be very small or in the negative range. His
psychology, sociology, and many other fields, expectations were also very high, so subtracting
including areas that initially influenced the his comparison level from the outcome results
development of the theory. is a low level of satisfaction.

What is Social Exchange Theory? Steve is unlikely to simply sever his relationship
Social Exchange Theory discusses an individual’s with Mary over this particular outcome. There is
outcome to different social interactions by also the factor of dependence to consider.
examining the exchange of resources during Dependence is calculated by subtracting the
social interactions. These resources can be comparison level of alternatives from the
material goods and services or an exchange of outcome. There are other individuals in the
social value. This theory is highly reliant on world, and Steve could form interactions and
reciprocity for whatever costs are incurred by relationships with these individuals. However,
the individual. these alternatives must have a higher
comparison level than the outcome of
The outcome can be calculated by subtracting interactions with Mary.
the costs from the benefits. This analysis is
subjective because different individuals place One common example of dependence occurs in
different values on resources, even those exchanges for goods and services. Steve might
resources defined by a measurable system, such frequent a family-owned grocery store in his
as currency. It should be noted that this small hometown. The prices are annoyingly high
expectation plays a large role in an individual’s and the selection of products is poor, so Steve is
analysis of the value of the outcome. This unsatisfied with the outcome of his grocery
affects the individual’s social relationships shopping experience. However, this might be
because an individual anticipating a particularly the only grocery store for miles. The only
high outcome will be disappointed and possible alternative is a gas station convenience
ultimately unsatisfied with the relationship if a store with an even smaller selection, so this is
smaller outcome is reached. However, an not a viable alternative. Steve continues to
individual with a lower expectation for the interact with the grocery store and its owners
outcome will not encounter this difficulty. because the alternatives are not better than the
Therefore, satisfaction can be calculated by outcome of his current interaction.
subtracting a “comparison level” from the
outcome. If the comparison level is higher than Overall, the Social Exchange Theory asserts that
the outcome, the value for satisfaction will be humans seek to maximize rewards with minimal
negative. costs. This is achieved through analyzing the
outcome of social interactions.
For example, Steve buys Mary a pricey
Christmas present which required hours of History
thought and scouring the mall. Come Christmas
The first major publication regarding Social
Exchange Theory, which was entitled “The https://www.communicationstudies.com/
Social Psychology of Groups,” was published by communication-theories/social-exchange-
John Thibault and Harold Kelley in 1952. The theory
theory was later refined in the laboratory by
two sociologists at University of Washington Ashley Crossman
named Richard Emerson and Karen Cook. This Updated May 06, 2019
work started in 1978 and continued throughout Social exchange theory is a model for
the 1980s. interpreting society as a series of interactions
between people that are based on estimates of
Critiques rewards and punishments. According to this
Social Exchange Theory possesses the necessary view, our interactions are determined by the
qualities of a scientific theory. Predictions can rewards or punishments that we expect to
be generated from applications of the theory, receive from others, which we evaluate using a
and new hypotheses have been created from cost-benefit analysis model (whether
the central ideas of the theory. Social Exchange consciously or subconsciously).
Theory is a parsimonious effort to explain social
interactions and communications. Like all
scientific theories, it can be proven false. Overview
Central to the social exchange theory is the idea
However, Katherine Miller poses many that an interaction that elicits approval from
objections to Social Exchange Theory in her another person is more likely to be repeated
2005 publication. According to Miller, Social than an interaction that elicits disapproval. We
Exchange Theory assumes that the intimacy can thus predict whether a particular
achieved in relationships is linear in nature, interaction will be repeated by calculating the
despite many relationships skipping traditional degree of reward (approval) or punishment
steps or regressing. Also, the theory relies on (disapproval) resulting from the interaction. If
complete openness in all interactions, even the reward for an interaction exceeds the
though some exchanges may require less punishment, then the interaction is likely to
openness. The theory’s background in economic occur or continue.
theory assumes that human exchanges are all
rational processes. Lastly, Miller argued that
this theory’s focus on individual outcomes does According to this theory, the formula for
not consider cultures with group-oriented predicting the behavior of any individual in any
interactions. situation is:

Conclusion Behavior (profits) = Rewards of interaction –

Despite any criticism, Social Exchange Theory costs of interaction.
remains relevant within social psychology
schools and continues to spawn research. With Rewards can come in many forms: social
a firm background in fields such as recognition, money, gifts, and even subtle
anthropology, economics, and psychology, this everyday gestures like a smile, nod, or pat on
theory is likely to remain an area of interest in the back. Punishments also come in many
many fields for years to come. forms, from extremes like public humiliation,
beating, or execution, to subtle gestures like a People are rational and calculate the best
raised eyebrow or a frown. possible means to compete in rewarding
situations. The same is true of punishment
While social exchange theory is found in avoidance situations.
economics and psychology, it was first Critiques
developed by the sociologist George Homans, Many critique this theory for presuming that
who wrote about it in an essay titled "Social people always make rational decisions, and
Behavior as Exchange." Later, sociologists Peter point out that this theoretical model fails to
Blau and Richard Emerson further developed capture the power that emotions play in our
the theory. daily lives and in our interactions with others.
This theory also undercuts the power of social
Example structures and forces, which unconsciously
A simple example of social exchange theory can shape our perception of the world and our
be seen in the interaction of asking someone experiences within it, and play a strong role in
out on a date. If the person says yes, you have shaping our interactions with others.
gained a reward and are likely to repeat the https://www.thoughtco.com/social-exchange-
interaction by asking that person out again, or theory-3026634
by asking someone else out. On the other hand,
if you ask someone out on a date and they
reply, “No way!” then you have received a
punishment that will probably cause you to shy
away from repeating this type of interaction
with the same person in the future.

Basic Assumptions of Social Exchange Theory

People who are involved in the interaction are
rationally seeking to maximize their profits.
Most gratification among humans comes from
others.
People have access to information about social,
economic, and psychological aspects of their
interactions that allow them to consider the
alternative, more profitable situations relative
to their present situation.
People are goal oriented in a freely competitive
system.
The exchange operates within cultural norms.
Social credit is preferred over social
indebtedness.
The more deprived the individual feels in terms
of an act, the more the person will assign a
value to it.