Social Exchange Theory

Social Exchange Theory: Psychology

Researchers in psychology have long been interested in how relationships develop between humans. Are relationships developed based on mutual gains, or are people more invested if the benefits of maintaining a relationship outweight the costs? Social exchange theory explores the costs versus the benefits of relationships and how people minimise and maximise them respectively.

Chores, sex, companionship, and compromise are all different types of social exchange. Using these types of social exchange, psychologists Thibaut and Kelley (1959)¹ explained relationships in economic terms.

According to them, partners will strive to maximise profits such as sex, companionship, and emotional support and minimise losses such as compromise, arguments, and commitments; these tend to change over time.

Comparison Level

There are two levels to the social exchange theory: the comparison level and the comparison level for alternatives.

Since every individual and every relationship is different, the comparison level varies. Overall, however, it can be affected by a variety of external and internal factors.

Comparison Level for Alternatives

In certain situations, the comparison level can lead to the comparison level for alternatives. You might be wondering what this means and how it's different.

According to Thibaut and Kelly’s theory, people will stay in their current relationship if they find it more profitable than the alternatives.

Every individual wants their relationships and interactions in life to be valuable to them. What is valuable for one individual may not be valuable for another, so this theory does not aim to specify what is beneficial and what isn't. Even so, it relies on a few assumptions.

Fig. 2 - According to social exchange theory, comparisons are made according to a cost and benefit analysis.

Social Exchange Theory Assumptions

The social exchange theory might suggest that a relationship is a constant negotiation of profits and losses, but in order to do that, it makes certain core assumptions about human nature as well as the nature of relationships. The assumptions the social exchange theory makes about human nature are as follows:

1. Individuals will always look for what is most profitable to them instead of what is most costly.
2. Since is it impossible to know what rewards and costs an interaction actually offers before making that interaction, individuals tend to guide their behaviour by their own expectations of rewards and costs.
3. Individuals are rational and are able to weigh the rewards and costs of a relationship, as well as consider other alternatives before making their final decision.
4. Since each individual is different and matures through life experiences differently, the manner in which they weigh these costs and benefits will differ from person to person and will also change over time.

Further, it makes assumptions about the nature of relationships as well. These are -

1. Any social exchange relies on interdependence. This means that being able to receive benefits from another person is dependent on one's ability to provide others with them as well.
2. Social exchanges are controlled by standards of reciprocity and fairness.
3. Benefits received via a relationship contribute to an individual's trust, which further strengthens the relationship.

This theory can be applied to different parts of an individual's life - friendships, educational settings and romantic relationships. Let's take a look at some applications of this theory to understand it better.

Application of Social Exchange Theory

Let's talk about how the social exchange theory can apply to real-life relationships.

Social Exchange Theory in Relationships

We've already discussed what the social exchange theory means, but how does it apply to real-world relationships?

Fig. 3 - Couples in therapy are encouraged to work through their problems to maximise rewards.

Social Exchange Theory Examples

Since we've discussed an example of the social exchange theory in relationships already, let's try and apply this theory to another aspect of an individual's life.

Evaluation of the Social Exchange Theory

While the social exchange theory does have its strengths, it has its fair share of weaknesses as well. Let's discuss some of these below.

Strengths

Sprecher (2001)³ found that the comparison level of alternatives was a significant factor in ensuring commitment in relationships. For women especially, he found that rewards were a predictor of satisfaction. This finding shows social exchange theory at work, as people consider rewards and costs and comparison in real relationships.

Brosnan and De Waal’s (2003)⁴ research suggests an evolutionary need for benefits in a relationship. In their study of capuchin monkeys, they observed monkeys became angry when given unequal reward distributions for playing a game, suggesting an innate need for rewarding relationships.

Weaknesses

Most studies into social exchange theory are game-based research tasks involving strangers, e.g., Emerson and Cook’s (1978)⁵ study in which partners bargained to get the highest score in a video game. The lab setting, unrealistic tasks, and unknown participants do not mirror real-life relationships, thereby lacking reliability and validity.

The social exchange theory assumes couples keep a tally of positives and negatives throughout their relationship. Clark and Mills (2011)⁶ argue this is not the case for romantic relationships; these are communal, not exchange relationships, such as your relationship with a colleague or boss. Further, equity theory states that perceived rewards do not keep a relationship afloat, but rather the perceived equity.

Moreover, the social exchange theory attempts to set a universal approach to relationships, but as mentioned above, relationships vary from couple to couple, so the approach cannot be generalised.