Social Exchange Theory

1
Social Exchange Theory

• Economic Metaphor
• Answers the Why? question
• Mostly dyadic but also Generalized Exchange

2
Basic Elements

• Rewards, Costs, Profits
• Love, Goods, Services, Money, Information, Status
• Comparison Level and CL for alternatives
• Exchange relationship, Interdependence,
  Investments, Changes in rewards as relationships
  develop
• Emphasis on Fairness
• Equality, equity, need, highest reward level
• Can be short-term or long-term

3
Vulnerabilities and Wiggle Room

• Where is the internal calculator? feeling?
• What about self-perpetuating commodities like
  love and information?
• Are all forms of fairness consistent with SE,
  i.e., need and highest reward level
• Compassionate Altruism its own reward?
• Exchange vs. Communal Relationships

4
Social Exchange Theory Captures

• Best for early relationships and deteriorating
  ones
• Need to evaluate a relationship as good/bad for
  you.
• Social rules (esp. fairness)
• Recognizing whats missing or unfair
• Model for understanding other peoples
  actions/relationships

5
Social Exchange Theory Misses

• Doesnt work in the middle of a relationship.
• Doesnt explain selflessness
• How do you measure rewards/costs?
• Simplifies a complex individual process.
• We or unit as basis for evaluation
• Rewards are narrowly defined.