SOCIAL

EXCHANGE
THEORY
Lesson 11
Introduction
 See video: https://
www.youtube.com/watch?v=mlhHTdDqoBc
 It is based on the notion that people review and
weigh their relationships in terms of costs and
rewards
 Theorists argue that all relationships require some
time and effort on the part of the parties
involved.
 A particular factor (e.g., money/prize) can be
considered a reward at one point in the
relationship and a cost at another point.
Introduction
 The formula that is used to “calculate” the overall value of a
relationship subtracts the costs involved from the rewards
provided.
Formula
Rewards – Costs = Worth (+/-) (Outcome)

 According to SET, the worth of a relationship predicts its outcome.

 While there have been five different theories identified to explain
social exchange in relationships; the authors base their
interpretation on Thibaut and Kelley's Theory of Interdependence.
Assumptions
• Humans seek rewards and avoid
Assumptions punishments.
• Humans are rational beings.
about human • The standards that humans use to evaluate
nature costs and rewards vary over time and from
person to person.

Assumptions • Relationships are interdependent.

about the nature • Relational life is a process.
of relationships
Evaluation of relationship
 Individuals evaluate their relationships by deciding
whether to continue or terminate the relationship.
 Thibaut and Kelley identified two types of
comparison levels that are used for evaluating
relationships.
1. Comparison level (CL) refers to a standard for
what a person thinks he or she should get in a
relationship
2. Comparison level for alternatives (CLalt)
refers how people evaluate a relationship based
on what their alternatives to the relationship are
Evaluation of relationship
Outcome > CL = Satisfied

Outcomes < CL = Dissatisfied

Outcomes > CLalt = Stay

Outcomes < CLalt = Terminate

See video: https://www.youtube.com/watch?v=VOFg8KyRwSg

Exchange patterns
 In addition to explaining how people calculate the
outcomes of their relationship, Thibaut and Kelley
examined how people adjusted their behaviors in
a relationship.
 Their examination is based on the assumption that
people are driven to achieve goals in their
interactions with others.
 People engage in "behavioral sequences," which are
defined as a series of actions designed to achieve
one's goals.
 See movie: https://
www.youtube.com/watch?v=nn3I6-DBLJM
Exchange structures
 Exchanges may take several forms within the
three above mentioned matrices.
1. Direct exchanges are exchanges where two
people reciprocate costs and rewards.
2. Generalized exchanges are exchanges where
reciprocation involves the social network and
isn’t confined to two individuals.
3. Productive exchanges are exchanges where
both partners incur costs and benefits
simultaneously.
Critique of SET
A. Testability
1. Sabatelli and Shehan (1993) criticize the theory as
untestable because the central concepts of costs and
rewards are not clearly defined.

B. Utility
1. A second criticism is that the theory views humans
as rational calculators who are able to come up with
numerical representations of the their relational lives.
2. Duck (1994) argues that people are not as self-
interested as the theory assumes.
Critique of SET
C. Scope
1. A final complaint is that the theory fails to
focus on the importance of group solidarity
and its role in individual needs fulfillment.
2. This may suggest that the theory is too
narrow.

D. Heurism
1. SET has helped frame many studies in many
diverse areas of research.