Exchange Theory

George Homans

• focus on psychological motives of individuals

• social institutions are the result of individuals interacting

• all social behavior is motivated by the individual and is independent of other historical, cultural, organizational motives

• status is based on what we give and what we get in social exchange

• behavioral conditioning: rewards and punishment or positive and negative conditioning

• exchange relationships characterized by power imbalances

• power depends on access to scarce resources

• one never gets (nor gives) something for nothing

Peter Blau

• organizations/collectivities have their own social dynamic independent of individual motives

• occupational rank/status differences produce social exchange relationships

• trust enhances effectiveness of task completion

• Social Exchange

  • a mixed bag of results…

  • expectations are built out of undefined obligation and are not as specific as economic exchange, for example

  • reciprocity in social exchange is expected but not guaranteed

  • trust is required to carry out social exchange

  • established bonds of friendship but also reinforces status differences, power imbalances

Exchange Network Theory

• exchange network moves beyond the dyad or small group to a set of actors linked together directly or indirectly through exchange relations

• relations characterized by power dependence

• institutional mechanisms ensure trust in exchange relations (e.g., securities and exchange commission, professional associations)

• networks can function effectively even in the absence of trust

• social capital (connections) enables us to get things done by people with whom we do not have a trust relationship (e.g., political strategies)

Rational Choice Theory

• micro-economic model of the utilitarian, self-interested individual (Coleman, Becker)

• individuals act in purposeful, economically efficient ways; maximize the utility of action and scarce resources to advance self-interest

• cost-benefit analysis used to decide who or what types of relations or social exchange to engage in

• human capital: resources in people (education, health, job training)

• social capital (resources gained in the relations among people)

• Coleman: norms are a component of social capital (close to Parsons, Ch. 4)

Criticisms of Rational Choice Theory

• self-interest not confined to economic rewards

• relations characterized by power imbalances (e.g. marriage)

• there are structural & cultural constraints on individual self-optimizing behavior