Social Exchange Theory: Understanding Human Relationships

Introduction

Social Exchange Theory (SET) is a psychological and sociological theory that explains human relationships in terms of cost-benefit analysis. It suggests that people form and maintain relationships based on perceived rewards and costs. If a relationship provides more benefits than costs, individuals are likely to continue it; otherwise, they may end it.

This theory applies to friendships, romantic relationships, business interactions, and even social groups.

Key Assumptions of Social Exchange Theory

  1. People Seek to Maximize Rewards and Minimize Costs
    • Relationships are like economic transactions where individuals try to gain more benefits while reducing their losses.
    • Example: A person may stay in a friendship because they receive emotional support and companionship.
  2. Each Relationship Has Rewards and Costs
    • Rewards: Love, respect, financial support, social status, emotional support, or personal satisfaction.
    • Costs: Time, energy, emotional stress, financial expenses, or conflicts.
  3. Comparison Level (CL) Affects Relationship Satisfaction
    • People have expectations based on past experiences and societal norms.
    • If a relationship meets or exceeds expectations, they feel satisfied.
    • Example: If someone expects daily affection from a partner but receives little, they may feel unsatisfied.
  4. Comparison Level for Alternatives (CLalt) Influences Decisions
    • People compare their current relationship to possible alternatives.
    • If a better option is available, they may leave the current relationship.
    • Example: An employee may quit their job if another company offers higher pay and better work conditions.
  5. Equity and Fairness Matter
    • People want balanced relationships where both sides benefit equally.
    • If one person gives more than they receive, they may feel exploited.

Applications of Social Exchange Theory

1. Romantic Relationships

  • People stay in relationships when they feel valued, loved, and supported.
  • Breakups happen when one partner feels they are giving more than they receive.

2. Friendships

  • Friendships thrive when both people contribute equally (e.g., emotional support, time, shared interests).
  • If one person is always giving and the other is always taking, the friendship may end.

3. Workplace and Business Relationships

  • Employees stay in jobs when the salary, benefits, and work environment outweigh stress and workload.
  • Businesses build customer loyalty by providing better services than competitors.

4. Social Media and Online Interactions

  • People engage on social media when they receive likes, comments, and social validation.
  • If online interactions become toxic or unfulfilling, users may withdraw.

Criticism of Social Exchange Theory

  1. Overemphasis on Self-Interest
    • The theory assumes people are always calculating benefits, but many relationships are based on emotions, trust, and unconditional care.
  2. Ignores Cultural and Social Factors
    • Relationships are often shaped by traditions, societal expectations, and norms rather than just personal rewards.
  3. Fails to Explain Altruistic Behavior
    • Some people help others without expecting anything in return (e.g., charity, volunteering).
    • Not all relationships are based on calculated exchanges.
  4. Difficult to Quantify Rewards and Costs
    • Emotional satisfaction, love, or personal growth cannot always be measured like financial transactions.

Conclusion

Social Exchange Theory provides a useful framework for understanding relationships in terms of rewards and costs. It explains why people maintain or end relationships based on perceived benefits. However, it may not fully capture emotional, cultural, and selfless aspects of human interactions.

Discussion Question:

Think about an important relationship in your life. Do you feel the exchange is balanced, or do you give more than you receive?