Social Exchange Theory

• Developed by Thibaut and Kelle

• Purpose: based on the notion that people think about their relationships in economic terms

• The major force in interpersonal relationships is the satisfaction of both people’s self-interest

• Uses the analogy of economic exchanges

• Views exchange as a social behavior that may result in both economic and social outcomes (being friends with someone for the money or for status; people tend to act on self-interest)

Assumptions of SET

• The nature of the individual

• The relationship between 2 people

• Humans seek rewards and avoid punishments

• Humans are rational beings

• The standards that humans use to evaluate costs and rewards vary over time from person to person(you may not find value in a relationship, but the other person may..vice versa)

• Relationships are interdependent

• Relational life is a process

Elements of SET

• Perceived profit + rewards-costs

• We are all in relationships for profit

• We leave relationships when we no longer perceive them as profitable or when the costs of staying outweigh the rewards

• Self-interest 

• Seek fair outcomes, distributive justice, and equity

• Alter own behavior or seek to alter others’ behavior to achieve desired outcomes

Costs and rewards of SET

• People evaluate their relationships in terms of costs and rewards

• Costs-negative value

• Rewards- positive value

• Positive relationships are those where the rewards exceed the cost Worth=rewards - costs

• Negative relationships are those where the costs exceed the rewards

• The worth of a relationship will influence its outcome

Perceived Profit and Rewards

• What individuals perceive they are profiting by being in the relationship (May or may not be reality)

• Different and unique for each person

• As long as both parties view the relationship as profitable, the relationship can endure

• Rewards - what we give each other in relationships

• What things do you get out of your relationships that you highly value?

• Types of rewards - cash, goods, services, sentiments 

Reward Problematics and Costs

• Reward deprivation - when there is a type of one reward that one “perceives” a great need for but is not getting  (I’m doing so much for you yet you aren't happy(because a specific need isn’t met))

• Reward satiation - when one perceives “too much” of a good thing and the reward comes to have little value

• Actual costs - time, money, energy

• Psychological costs - stress of giving the reward (I can’t do this anymore.)

Power and Exchange Patterns

• People adjust their behaviors in a relationship

• Behavioral sequences - a series of actions designed to achieve a goal

Types of power in SET

• Fate control - ability to affect a partner’s outcomes

• Behavior control- the power to change another’s behavior by changing one’s own behavior (staring at phone mid-conversation going NO WAY AHAHAHAH)

Self-Interest and Interdependence

• It is assumed that the nature of human beings is self-centered

• When individuals make decisions they always consider what is best for them to accomplish their goals and desires

• If a relationship is to be successful, then both parties are expected to give and take in equal proportions(it is possible that both parties can get equal rewards)

• Dimensions of interdependence

• Mutual dependence you rely on this person for something(finance experience emotional needs)

• Power (asymmetric dependence) when one partner is more dependent on the other to have their outcome satisfied (roommate is sleeping so you have to change behavior to not wake them)

• Conflict - a lack of correspondence in outcomes

• Coordination - people need to work together to meet outcomes(put headphones on so you can sleep)

• Future interdependence (how one interaction will affect future ones (roommates are too loud and so you’ll try to leave to sleep elsewhere; ReVenGe)

• Information certainty - Each partner  knows for sure what the other one wants; mutual understanding