Thibaut and Kelley
Thibaut and Kelley based their theory on small groups related with dyadic relationships. They used the reward-cost matrices fromHomans
The foundation of the social exchange theory was first introduced by George C. Homans in 1958 based on his work "Social Behavior as Exchange", where he applied principles of behavior psychology and sociology to social interactions. Homans expanded his research in 1961 through "elementary forms of social behavior. Homans based his theory on concepts that include equilibration, expectancy, and a distributive justice in dyadic exchanges. Using this framework, he explained how people interact in small groups, showing that the rewards that they get are usually based on how much effort and resources that they contribute. Homans summarized his system with three main propositions: success, stimulus and deprivation-satiation propositions, described below. #Success proposition: When one finds they are rewarded for their actions, they tend to repeat the action. #Stimulus proposition: The more often a particular stimulus has resulted in a reward in the past, the more likely it is that a person will respond to it. #Deprivation–satiation proposition: The more often in the recent past a person has received a particular reward, the less valuable any further unit of that reward becomes.Blau
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. 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. 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. 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. Blau emphasized technical economic analysis whereas Homans concentrated more on the psychology of instrumental behavior.Emerson
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. According to Emerson, Exchange is not a theory, but a framework from which other theories can converge and be compared to structural functionalism. Emerson's perspective was similar to Blau's since they both focused on the relationship power had with the exchange process. Emerson says that social exchange theory is an approach in sociology that is described for simplicity as an economic analysis of noneconomic social situations. Exchange theory brings a quasi-economic form of analysis into those situations.Lévi-Strauss
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.Self-interest and interdependence
Self-interest and interdependence are central properties of social exchange. 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. Homans uses the concepts ofBasic concepts
Social exchange theory views exchange as a social behavior that may result both in economic and social outcomes. Social exchange theory has been generally analyzed by comparing human interactions with the marketplace. The study of the theory from the microeconomics perspective is attributed to Blau. Under his perspective every individual is trying to maximize his wins. Blau stated that once this concept is understood, it is possible to observe social exchanges everywhere, not only in market relations, but also in other social relations like friendship. Social exchange process brings satisfaction when people receive fair returns for their expenditures. The major difference between social and economic exchange is the nature of the exchange between parties. Neoclassic economic theory views the actor as dealing not with another actor but with a market and environmental parameters, such as market price. Unlike economic exchange, the elements of social exchange are quite varied and cannot be reduced to a single quantitative exchange rate."SOCIAL EXCHANGE THEORY." Encyclopedia of Public Relations. Thousand Oaks: Sage Publications, 2005. Credo Reference. 9 Feb. 2010. Web. 2 Nov. 2013.Cost and rewards
Simple social exchange models assume that rewards and costs drive relationship decisions. Both parties in a social exchange take responsibility for one another and depend on each other. The elements of relational life include: Costs are the elements of relational life that have negative value to a person, such as the effort put into a relationship and the negatives of a partner. (Costs can be time, money, effort etc.) Rewards are the elements of a relationship that have positive value. (Rewards can be sense of acceptance, support, and companionship etc.) As with everything dealing with the social exchange theory, it has as its outcome satisfaction and dependence of relationships. The social-exchange perspective argues that people calculate the overall worth of a particular relationship by subtracting its costs from the rewards it provides. : If worth is a positive number, it is a positive relationship. On the contrary, a negative number indicates a negative relationship. The worth of a relationship influences its outcome, or whether people will continue with a relationship or terminate it. Positive relationships are expected to endure, whereas negative relationships will probably terminate. In a mutually beneficial exchange, each party supplies the wants of the other party at lower cost to self than the value of the resources the other party provides. In such a model, mutual relationship satisfaction ensures relationship stability. : Homans based his theory onReciprocity norm
Summarized by Gouldner, the reciprocity norm states that a benefit should be returned and the one who gives the benefit should not be harmed. This is used to stabilize relationships and to identify egoism. This norm suggests independence in relationships and invite the individual to consider more than one's self-interest.Social penetration theory
Altman and D. Taylor introduced social penetration theory, which studies the nature and quality of social exchange and close bonds. It suggests that once the individuals start to give more of their resources to one another, relationships evolve progressively from exchanging superficial goods to other, more meaningful exchanges. It progresses to the point called "self-disclosure", where the individuals share innermost thoughts and feelings with one another.Equity and inequity
In this process, the individuals will compare their rewards with others' in relation to their costs. Equity can be defined as the balance between a person's inputs and outcomes on the job. Some examples of inputs can be qualifications, promotions, interest on the job and how hard one works. Some outcomes can be pay, fringe benefits, and power status. The individual will mainly expect an equitable input-outcome ratio. Inequity happens when the individual perceives an unbalanced ratio of their outcomes and other's outcomes. This can occur in a direct exchange of the two parties, or there can be a third party involved. An individual's point of view of equity or inequity can differ depending on the individual.Aging
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. 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 (Theoretical propositions
Ivan Nye
Ivan Nye came up with twelve theoretical propositions that aid in understanding the exchange theory. # Rewards being equal, they choose alternatives from which they anticipate the fewest costs. # Immediate outcomes being equal, they choose those alternatives that promise better long-term outcomes. # Long-term outcomes being perceived as equal, they choose alternatives providing better immediate outcomes. # Costs and other rewards being equal, individuals choose the alternatives that supply or can be expected to supply the most social approval (or those that promise the least social disapproval). # Costs and other rewards being equal, individuals choose statuses and relationships that provide the most autonomy. # Other rewards and costs equal, individuals choose alternatives characterized by the least ambiguity in terms of expected future events and outcomes. # Other costs and rewards equal, they choose alternatives that offer the most security for them. # Other rewards and costs equal, they choose to associate with, marry, and form other relationships with those whose values and opinions generally are in agreement with their own and reject or avoid those with whom they chronically disagree. # Other rewards and costs equal, they are more likely to associate with, marry, and form other relationships with their equals, than those above or below them. (Equality here is viewed as the sum of abilities, performances, characteristics, and statuses that determine one's desirability in the social marketplace.) # In industrial societies, other costs and rewards equal, individuals choose alternatives that promise the greatest financial gains for the least financial expenditures. In his article published in 1978, Nye originally proposed seven propositions that were common in all types of relationship. A few years later he would expand the propositions to a total of twelve. The first five propositions listed are classified as general propositions and are substance free-meaning, the propositions themselves can stand alone within the theory. Proposition number six has been identified by scholars as a notion that there is a general assumption of a need for social approval as a reward and can therefore act as a drive force behind actions. Proposition seven will only work if the individual has the freedom to be excluded from outside factors while in a social exchange relationship. The twelfth and final proposition is directed towards the way our society has a heightened value placed on monetary funds.Homans
Even though Homans took an individualistic approach, a major goal of his work was to explicate the micro-foundations of social structures and social exchange. By studying such forms of behavior he hoped to illuminate the informal sub-institutional bases of more complex social behavior, typically more formal and often institutionalized. According to Homans, social structures emerge from elementary forms of behavior. His vision of the underpinnings of social structure and institutional forms is linked to the actions of individuals, for example to their responses to rewarding and punishment circumstances. Homans developed five key propositions that assist in structuring individuals' behaviors based on rewards and costs. This set of theoretical ideas represents the core of Homans's version of social exchange theory. *The first proposition: the success proposition states that behavior that creates positive outcomes is likely to be repeated. * The second proposition: the stimulus proposition believes that if an individual's behavior is rewarded in the past, the individual will continue the previous behavior. *The third proposition: the value proposition believes that if the result of a behavioral action is considered valuable to the individual, it is more likely for that behavior to occur. *The fourth proposition: the deprivation-satiation proposition believes that if an individual has received the same reward several times, the value of that reward will diminish. *The fifth proposition discusses when emotions occur due to different reward situations. Those who receive more than they expect or do not receive anticipated punishment will be happy and will behave approvingly.Frazer
Based on economics, Frazer's theory about social exchange emphasizes the importance of power and status differentiations in social exchange. Frazer's theory had a particular interest in the cross-cousin marriage.Malinowski
With his Kula exchange, Malinowski drew a sharp differentiation between economic exchange and social exchange. Using his Kula exchange, Malinowski states that the motives of exchange can be mainly social and psychological.Mauss
Mauss's theory tries to identify the role played by morality and religion in the social exchange. Mauss argues the exchange found in the society is influenced by social behaviors, while morality and religion influence all aspects of life.Bohannan
Bohannan focuses his theory on economic problems such as multi-centrism, and modes of exchange. He contributed to the social exchange theory finding the role and function of markets in tribal subsistence economies, makes a distinction of economic redistribution and market exchange from social relationships.Polanyi
He proposes three principles to create a new idea for socioeconomic change, transforming traditional economies, and political economic development. These principles are: reciprocity, redistribution and marketing.Sahlins
He presents the idea that the economy is a category of behavior instead of just a simple category of culture.Assumptions
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. 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: *Humans seek rewards and avoid punishments. *Humans are rational beings. *The standards that humans use to evaluate costs and rewards vary over time and from person to person. The assumptions social exchange theory makes about the nature of relationships include the following: *Relationships are interdependent. *Relational life is a process. Social systems result from human activity and function as structures designed to organize, guide, and regulate human affairs. However, variations exist in how costs and benefits are weighed depending on the actors involved, as well as in the interpretation, adoption, enforcement, neglect, and application of norms and sanctions. Furthermore, regarding human nature, 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. All relationships involve exchanges, and the balance of these exchanges is considered fair when they are equitable.Comparison levels
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". 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. 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". In other words, when using this evaluation tool, an individual will consider other alternative payoffs or rewards outside of the current relationship or exchange. 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.Modes of exchange
According to Kelley and Thibaut, people engage in behavioral sequence, or a series of actions designed to achieve their goal. This is congruent with their assumption that human beings are rational. When people engage in these behavioral sequences, they are dependent to some extent on their relational partner. In order for behavioral sequences to lead to social exchange, two conditions must be achieved: "It must be oriented towards ends that can only be achieved through interaction with other persons, and it must seek to adapt means to further the achievement of these ends". The concept of reciprocity also derives from this pattern. The reciprocity principle refers to the mutual reinforcement by two parties of each other's actions. The process begins when at least one participant makes a "move", and if the other reciprocates, new rounds of exchange initiate. Once the process is in motion, each consequence can create a self-reinforcing cycle. Even though the norm of reciprocity may be a universally accepted principle, the degree to which people and cultures apply this concept varies.Power dependence relations
Several definitions of power have been offered by exchange theorists. For instance, some theorists view power as distinct from exchanges, some view it as a kind of exchange and others believe power is a medium of exchange. However, the most useful definition of power is that proposed by Emerson, who developed a theory of power-dependence relations. According to this theory, the dependence a person has on another brings up the concept of power. Power differentiation affects social structures by causing inequalities between members of different groups, such as an individual having superiority over another. Power within the theory is governed by two variables : the structure of power in exchange networks and strategic use. Experimental data show that the position an actor occupies in a social exchange network determines relative dependence and therefore power. According to Thibaut and Kelley, there are two types of power: fate control and behavior control. Fate control is the ability to affect a partner's outcomes. Behavior control is the power to cause another's behavior to change by changing one's own behavior.Matrices
People develop patterns of exchange to cope with power differentials and to deal with the costs associated with exercising power. These patterns describe behavioral rules or norms that indicate how people trade resources in an attempt to maximize rewards and minimize costs. Three different matrices have been described by Thibaut and Kelley to illustrate the patterns people develop. These are given matrix, the effective matrix and the dispositional matrix. *The given matrix represents the behavioral choices and outcomes that are determined by a combination of external factors (environment) and internal factors (the specific skills each interactant possesses). *The effective matrix "which represents an expansion of alternative behaviors and/or outcomes which ultimately determines the behavioral choices in social exchange" *The dispositional matrix represents the way two people believe that rewards ought to be exchanged between them. There are three forms within these matrices: Reciprocity, Generalized Exchange, and Productive Exchange. In a direct exchange, reciprocation is confined to the two actors. One social actor provides value to another one and the other reciprocates. There are three different types of reciprocity: #Reciprocity as a transactional pattern of interdependent exchanges #Reciprocity as a folk belief #Reciprocity as a moral norm A generalized exchange involves indirect reciprocity between three or more individuals. For example, one person gives to another and the recipient responds by giving to another person other than the first person. Productive exchange means that both actors have to contribute for either one of them to benefit. Both people incur benefits and costs simultaneously. Another common form of exchange is negotiated exchange which focuses on the negotiation of rules in order for both parties to reach a beneficial agreement. Reciprocal exchanges and negotiated exchanges are often analyzed and compared to discover their essential differences. One major difference between the two exchanges is the level of risks associated with the exchange and the uncertainty these risks create (ref). Negotiated exchange can consist of binding and non-binding negotiations. When comparing the levels of risk within these exchanges, reciprocal exchange has the highest level of risk which in result produces the most uncertainty. An example of a risk that could occur during the reciprocal exchange is the factor that the second party could end up not returning the favor and completing the reciprocal exchange. Binding negotiated exchanges involve the least amount of risks which will result the individuals feeling low levels of uncertainty. Whereas non-binding negotiated exchanges and their level of risks and uncertainty fall in between the amount of risks associated with reciprocal and binding negotiated exchanges. Since there is not a binding agreement involved, one party involved in the exchange could decide to not cooperate with the agreement.Critiques
Katherine Miller outlines several major objections to or problems with the social exchange theory as developed from early seminal works *The theory reduces human interaction to a purely rational process that arises from economic theory. *The theory favors openness as it was developed in the 1970s when ideas of freedom and openness were preferred, but there may be times when openness isn't the best option in a relationship. *The theory assumes that the ultimate goal of a relationship is intimacy when this might not always be the case. *The theory places relationships in a linear structure, when some relationships might skip steps or go backwards in terms of intimacy. Recent scholars, 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. They suggest that the Social Exchange Theory should include psychological and emotional exchanges which are less visible but just as important. 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 asApplications
The most extensive application of social exchange has been in the area of interpersonal relationships. However, social exchange theory materializes in many different situations with the same idea of the exchange of resources. Self-Interest can encourage individuals to make decisions that will benefit themselves overall. Homans once summarized the theory by stating: :Social behavior is an exchange of goods, material goods but also non-material ones, such as the symbols of approval or prestige. Persons that give much to others try to get much from them, and persons that get much from others are under pressure to give much to them. This process of influence tends to work out at equilibrium to a balance in the exchanges. For a person in an exchange, what he gives may be a cost to him, just as what he gets may be a reward, and his behavior changes less as the difference of the two, profit, tends to a maximum ("Theories Used in Research").Anthropology
Other applications that developed the idea of exchange include field ofRelationships
Throughout the theory, one can also end up losing relationships that were already established because the feeling of no longer being beneficial. One feels as if there is not longer a need for a relationship or communication due to lack of rewards. Once this happens, the process of looking for new partners and resources occurs. This allows a continuation of networking. One may go through this process quite frequently. A study applied this theory to new media (online dating). The study discovers the different factors involved when an individual decides to establish an online relationship. Overall the study followed the social exchange theory's idea, "people are attracted to those who grant them rewards". Another example is Berg's study about development of friendship between roommates. The research found how social exchange processes changed during the year by measuring self disclosure. According to the study, the amount one person rewards another and the comparison levels for alternatives become the most important factors in determining liking and satisfaction. Auld, C. and Alan C. conducted a study to discover what processes occur and what is experienced during social leisure relationships. They use the concept of reciprocity to understand their findings. The study concluded that meeting new people is often given as a major reason for participation in leisure activities, and meeting new people may be conceptualized as an exercise of reciprocity. In this case, reciprocity is perceived as a starting mechanism for new social relationships because people are willing to be helped by others, expecting that the help will eventually be returned. A study conducted by Paul, G., called Exchange and access in field work tries to understand the relationships between the researchers and subjects. This study concludes thatInterracial marriage
Patterns of interracial marriage have been explained using social exchange theory. Kalmijn suggests that ethnic status is offset against educational or financial resources. This process has been used to explain why there are more marriages between black men and white women than between white men and black women. This asymmetry in marriage patterns has been used to support the idea of a racial hierarchy. Lewis, however, explains that the same patterns of marriage can be accounted for in terms of simple facial attractiveness patterns of the different gender by race groupings. Recent changes have seen an increase in black women marrying white men and a decrease in raw prevalence of interracial marriages when it comes to black women. There has also been a shift in the concentration of interracial marriage from mostly being between those with low education levels to those with higher levels of education.Business
Social exchange theory has served as a theoretical foundation to explain different situations in business practices. It has contributed to the study of organization- stakeholder relationships,Work settings
A study conducted by A. Saks serves as an example to explain engagement of employees in organizations. This study uses one of the tenets of social exchange theory to explain that obligations are generated through a series of interactions between parties who are in a state of reciprocal interdependence. The research identified that when individuals receive economic and socioemotional resources from their organization, they feel obliged to respond in kind and repay the organization. This is a description of engagement as a two-way relationship between the employer and employee. One way for individuals to repay their organization is through their level of engagement. The more engaged the employee are to their work, the greater amounts of cognitive, emotional, and physical resources they will devote to perform their job duties. When the organization fails to provide economic or emotional resources, the employees are more likely to withdraw and disengage themselves from their roles. Another more recent study by M. van Houten which took place in institutions for vocational education shows how, in social exchange relationships between teachers, reciprocity and feelings of ownership, affection and interpersonal safety impact on individual professionals´ decisions on what to share with whom. Colleagues who never ´pay back´ and make actual exchange happen (that is, who consume rather than produce and share), risk being left out. The study also points out the possibility of ´negative rewards´: exchange of one's knowledge, materials or otherwise may enable someone else the misuse that what was shared and/or take credit somewhere in the team or organization. As such, interpersonal relationships and ´fair´ exchange appear important, as does some kind of mechanism for rewards and gratitude (possibly organization-wide), as these impact on individual professional discretion and the degree and success of exchange.Citizenship behavior
Social exchange theory is a theoretical explanation for organizational citizenship behavior. This study examines a model of clear leadership and relational building between head and teachers as antecedents, and organizational citizenship behavior as a consequence of teacher–school exchange. Citizenship behavior can also be shown with employees and their employers. This is shown through organizational identification which plays an important role in organizational citizenship behavior. An employee's identification with their employer plays a significant role in supporting and promoting organized citizenship behavior, serving as a mediating mechanism with citizenship behaviors, perceived organizational justice, and organizational support based on both the social exchange and social identity theory.Online social networking and self-disclosure
Understanding interpersonal disclosure in online social networking is an ideal application of social networking theory. Researchers have leveraged SET to explain self-disclosure in a cross-cultural context of French and British working professionals. They discover that reciprocation is the primary benefit of self-disclosure, whereas risk is the foundational cost of self-disclosure. They find that positive social influence to use an online community increases online community self-disclosure; reciprocity increases self-disclosure; online community trust increases self-disclosure; and privacy risk beliefs decrease self-disclosure. Meanwhile, a tendency toward collectivism increases self-disclosure. Similar research also leveraged SET to examine privacy concerns versus desire for interpersonal awareness in driving the use of self-disclosure technologies in the context of instant messaging. This study was also a cross-cultural study, but instead compared US and Chinese participants.Affect theory
Traditionally actors in the social exchange theory are often viewed as individuals who are rational decision makers that weigh costs and rewards without emotion. The affect theory of social exchange complements social exchange theory by incorporatingAssumptions
Most social exchange models have three basic assumptions in common: social behavior is based on exchanges, if an individual allows someone to receives a reward that person then feels the need to reciprocate due to social pressure. Additionally, individuals will try to minimize their cost while gaining the most from the reward. The affect theory of social exchange is based on assumptions that stem from social exchange theory andTheoretical propositions
Affect theory of social exchange shows how the conditions of exchanges promote interpersonal and group relationships through emotions and affective processes. The theoretical arguments center on the following five claims: Emotions produced by exchange are involuntary, internal responses Individuals experienceSee also
References
Further reading
* * * * * * * * * * * * * * * * * *Stolte, John F. and Emerson, Richard M. (1977) "Structural Inequality: Position and Power in Network Structures." pp. 117–138 in Robert Hamblin and John Kunkel (eds.) Behavioral Theory in Sociology. New Brunswick, N.J.: Transaction Press.External links