Social exchange theory
Social exchange theory is a sociological and psychological theory that studies the social behavior in the interaction of two parties that implement a cost-benefit analysis to determine risks and benefits. The theory also involves economic relationships—the cost-benefit analysis occurs when each party has goods that the other parties value.[1] Social exchange theory suggests that these calculations occur in romantic relationships, friendships, professional relationships, and ephemeral relationships as simple as exchanging words with a customer at the cash register.[2] Social exchange theory says that if the costs of the relationship are higher than the rewards, such as if a lot of effort or money were put into a relationship and not reciprocated, then the relationship may be terminated or abandoned.[3]
The most comprehensive social exchange theories are those of the American social psychologists John W. Thibaut (1917–1986) and Harold H. Kelley (1921–2003), the American sociologists George C. Homans (1910–1989), Peter M. Blau (1918–2002), Richard Marc Emerson (d. 1982), and Claude Lévi-Strauss (1908–2009).[1] Homans defined social exchange as the exchange of activity, tangible or intangible, and more or less rewarding or costing between at least two persons.[4] After Homans founded the theory, other theorists continued to write about it, particularly Peter M. Blau and Richard M. Emerson, who in addition to Homans are generally thought of as the major developers of the exchange perspective within sociology.[5] Homans' work emphasized the individual behavior of actors in interaction with one another. Although there are various modes of exchange, Homans centered his studies on dyadic exchange.[6] John Thibaut and Harold Kelley are recognized for focusing their studies within the theory on the psychological concepts, the dyad and small group.[7] Lévi-Strauss is recognized for contributing to the emergence of this theoretical perspective from his work on anthropology focused on systems of generalized exchange, such as kinship systems and gift exchange.[6]
Thibaut and Kelley[edit]
Thibaut and Kelley based their theory on small groups related with dyadic relationships. They used the reward-cost matrices from game theory and discovered some clues of individuals' interdependence such as the power of a party over each other, also known as the "correspondence" versus "noncorrespondence" of outcomes. Additionally, they suggest that an individual can unilaterally affect her or his own outcomes in a relationship through chosen behaviors. They could predict the possible course of a social interaction through the analysis of aspects of power in an encounter. They also experimented on how the outcomes received in a relationship could define a person's attractions to relationships.[1]
Blau[edit]
Blau's theory is very similar to Homans'. However, he uses more economics terms and it is based principally on emergent social structure in social exchange patterns in small groups.[1] His theory analyzes the development of exchange theory in economics without emphasizing on the psychological assumptions. He contributed to the idea of distinguishing between social and economic exchanges and exchange and power. The goal of his theory was to identify complex and simple processes without ignoring emergent properties.[8] Blau's utilitarian focus encouraged the theorist to look forward, as in what they anticipated the reward would be in regards to their next social interaction.[6] Blau felt that if individuals focused too much on the psychological concepts within the theory, they would refrain from learning the developing aspects of social exchange.[7] Blau emphasized technical economic analysis whereas Homans concentrated more on the psychology of instrumental behavior.[7]
Emerson[edit]
Emerson was inspired by Homans and Blau's ideas. He focused on the interaction and relationship between individuals and parties. His view of social exchange theory emphasizes the resource availability, power, and dependence as primary dynamics. He thought that relations were organized in different manners, and they could differ depending on the type and amount of the resources exchanged. He poses the idea that power and dependence are the main aspects that define a relationship.[9] According to Emerson, Exchange is not a theory, but a framework from which other theories can converge and be compared to structural functionalism.[7] Emerson's perspective was similar to Blau's since they both focused on the relationship power had with the exchange process.[6] Emerson says that social exchange theory is an approach in sociology that is described for simplicity as an economic analysis of noneconomic social situations.[7] Exchange theory brings a quasi-economic form of analysis into those situations.[7]
Lévi-Strauss[edit]
Strauss was a social exchange theorist in the context of anthropology. He is recognized for contributing to the emergence of this theoretical perspective from his work on anthropology focused on systems of generalized exchange, such as kinship systems and gift exchange. He based his kinship systems on Mauss's investigation. As it works in the form of indirect reciprocities, Levi-Strauss suggested the concept of generalized exchange.[10]
Self-interest and interdependence[edit]
Self-interest and interdependence are central properties of social exchange.[11] These are the basic forms of interaction when two or more actors have something of value to each other, and they have to decide whether to exchange and in what amounts.[12] Homans uses the concepts of individualism to explain exchange processes. To him, the meaning of individual self-interest is a combination of economic and psychological needs.[13] Fulfilling self-interest is often common within the economic realm of the social exchange theory where competition and greed can be common.[14] In social exchange, self-interest is not a negative thing; rather, when self-interest is recognized, it will act as the guiding force of interpersonal relationships for the advancement of both parties' self-interest"—Michael Roloff (1981)[15] Thibaut and Kelley see the mutual interdependence of persons as the central problem for the study of social behavior. They developed a theoretical framework based on the interdependence of actors. They also highlighted social implications of different forms of interdependence such as reciprocal control.[16] According to their interdependence definition, outcomes are based on a combination of parties' efforts and mutual and complementary arrangements.[6]
Aging[edit]
The basis of social exchange theory is to explain social change and stability as a process of negotiating exchanges between parties. These changes can occur over a person's life course through the various relationships, opportunities, and means of support. An example of this is the convoy model of support, this model uses concentric circles to describe relationships around an individual with the strongest relationships in the closet circle. As a person ages, these relationships form a convoy that moves along with the person and exchanges in support and assistance through different circumstances that occur.[25] It also changes through the directionality of support given to and by the individual with the people within their support network. Within this model, there are different types of support (social support) a person can receive, those being intangible, tangible, instrumental, and informational. Intangible support can either be social or emotional and can be love, friendship and appreciation that comes with valuable relationships. Tangible support are physical gifts given to someone such as land, gifts, money, transportation, food, and completing chores. Instrumental support are services given to someone in a relationship. Finally, informational support is the delivering of information that is helpful to an individual.[26]
Social exchange theory is not one theory but a frame of reference within which many theories can speak to another, whether in argument or mutual support.[7] All these theories are built upon several assumptions about human nature and the nature of relationships. Thibaut and Kelley have based their theory on two conceptualizations: one that focuses on the nature of individuals and one that describes the relationships between two people. Thus, the assumptions they make also fall into these categories.
The assumptions that social exchange theory makes about human nature include the following:[29]
The assumptions social exchange theory makes about the nature of relationships include the following:[29]
The prisoner's dilemma is a widely used example in game theory that attempts to illustrate why or how two individuals may not cooperate with each other, even if it is in their best interest to do so. It demonstrates that while cooperation would give the best outcome, people might nevertheless act selfishly.[30]
All relationships involve exchanges although the balance of this exchange is not always equal. We cannot achieve our goals alone so as humans sometimes we have to become actors. In the world today we see actors as unemotional people but that is not the case once we reach our goals in the end.
Comparison levels[edit]
Social exchange includes "both a notion of a relationship, and some notion of a shared obligation in which both parties perceive responsibilities to each other".[31] John Thibaut and Harold Kelley proposed two comparison standards to differentiate between relationship satisfaction and relationship stability. This evaluation rests on two types of comparisons: comparison level and comparison level for alternative. According to Thibaut and Kelley, the comparison level (CL) is a standard representing what people feel they should receive in the way of rewards and costs from a particular relationship. An individual's comparison level can be considered the standard by which an outcome seems to satisfy the individual.[32] The comparison level for alternative (CLalt) refers to "the lowest level of relational rewards a person is willing to accept given available rewards from alternative relationships or being alone".[33] In other words, when using this evaluation tool, an individual will consider other alternative payoffs or rewards outside of the current relationship or exchange.[32] CLalt provides a measure of stability rather than satisfaction. If people see no alternative and fear being alone more than being in the relationship, social exchange theory predicts they will stay.[34]
Katherine Miller outlines several major objections to or problems with the social exchange theory as developed from early seminal works[47]
Russell Cropanzano and Marie S. Mitchell discuss how one of the major issues within the social exchange theory is the lack of information within studies on the various exchange rules.[45] Reciprocity is a major exchange rule discussed but, Cropanzano and Mitchell write that the theory would be better understood if more research programs discussed a variety of exchange rules such as altruism, group gain, status consistency and competition.[45] Meeker points out that within the exchange process, each unit takes into account at least the following elements: reciprocity, rationality, altruism (social responsibility), group gain, status, consistency, and competition (rivalry).[48][49]
Rosenfeld (2005) has noted significant limitations to Social Exchange Theory and its application in the selection of mates/partners. Specifically, Rosenfeld looked at the limitations of interracial couples and the application of social exchange theory. His analysis suggest that in modern society, there is less of a gap between interracial partners education level, socioeconomic status, and social class level which in turn, makes the previously understood application of social exchange moot.[50]