Understanding Social Exchange Theory in Psychology

Table of ContentsView AllTable of ContentsWhat Is Social Exchange Theory?HistoryKey ConceptsImpactFrequently Asked Questions

Table of ContentsView All

View All

Table of Contents

What Is Social Exchange Theory?

History

Key Concepts

Impact

Frequently Asked Questions

Close

Social exchange theory is a concept based on the idea that social behavior is the result of an exchange process. According to this theory, people weigh the potential benefits and risks of their social relationships. When the risks outweigh the rewards, they will terminate orabandon the relationship. The purpose of this exchange is to maximize benefits and minimize costs.

Most relationships are made up of a certain amount of give-and-take, but this does not mean that they are always equal. Social exchange suggests that it is the valuing of the ​benefits and costs of each relationship that determine whether or not we choose to continue a social association.

This theory of social interaction has been used across a variety of fields, including sociology, psychology, and even economics.

One of the most basic examples of social exchange theory is being asked on a date. If you feel that the benefits of going on the date outweigh the costs (there are more pros than cons), you will say yes. Conversely, if the costs outweigh the benefits (more cons than pros), you’ll likely say no.

Homans is known for being rather matter-of-fact. For example, although a sociologist himself, if asked, he would respond that “most sociological theorists are idiots.”

Other figures that contributed to the development of Homans' social exchange theory, albeit in different ways, were John Thibaut, Harold Kelley, and Peter Blau. Thibaut and Kelley were bothsocial psychologistsand Blau was a sociologist and theorist.

What Are the Key Concepts of Social Exchange Theory?

To truly understand social exchange theory requires recognizing the aspects on which it is based.

Costs vs. Benefits

Social exchange theory suggests that we essentially take the benefits of a relationship and subtract the costs in order to determine how much it is worth.

Positive relationshipsare those in which the benefits outweigh the costs.Negative relationshipsoccur when the costs are greater than the benefits.

Expectations and Comparison Levels

For example, if your previous romantic partner showered you with displays of affection, your comparison level for your next relationship is going to be quite high when it comes to affection. If your next romantic partner tends to be more reserved and less emotional, that person might not measure up to your expectations.

If you have always had poor friendships, your comparison levels at the start of a relationship will be lower than a person who has always hadsupportive and caring friends.

Expectations can appear within work relationships as well. Research indicates that there is an “expectation of reciprocity” within workplace settings between management and staff.If an employee doesn’t feel that their effort is being reciprocated from higher-ups, this can affect their work.

Impact of Social Exchange Theory on Relationships

The idea that relationships are based on an exchange can affect how we relate with others.

The Honeymoon Phase

The length of a friendship orromancecan play a role in the social exchange process. During the early weeks or months of a relationship, often referred to as the “honeymoon phase,” people are more likely to ignore the social exchange balance.

Things that would normally be viewed as high cost are dismissed, ignored, or minimized, while potential benefits are often exaggerated. When this honeymoon period finally comes to an end, there will often be a gradual evaluation of the exchange balance.

At this point, downsides become more apparent and benefits start to be seen more realistically. This recalibration of the exchange balance might lead to the termination of the relationship if the balance is tipped too far toward the negative side.

The 4 Stages of a Relationship

Evaluating the Alternatives

Another aspect of the social exchange process involves looking at possible alternatives. After analyzing the costs and benefits and contrasting these against your comparison levels, you might start to look at other options.

The relationship might not measure up to your comparison levels, but as you survey the potential alternatives, you might determine it is still better than anything else available. As a result, you might reassess the relationship in terms of what may now be a somewhat lower comparison level.

Equity Determines Health

Since social exchange theory is based on give and take, if this back and forth exchange is not considered equitable, it can affect the health of the relationship.The primary giver mayfeel resentfulwhile the primary receiver may be riddled withguilt.

If this type of exchange happens only once or twice, it likely won’t impact the relationship. However, if it becomes a pattern, feelings of resentment and guilt can start to build, creating a point of contention between the two.

Frequently Asked QuestionsThe communication theory of social exchange says that people communicate with others with the expectation that their communication will be equally reciprocated.For example, if you reach out to someone at a networking event, you might assume that they will respond with the same desire and enthusiasm.Learn More:Communication in RelationshipsTypically, being altruistic means giving without expecting anything in return, which contradicts the basis of social exchange. However, research indicates that there are two types of altruism: true and reciprocal.While a true altruist gives solely to give, a reciprocal gives with some expectation of a return.Learn More:What Is Altruism?Some suggest that since social exchange theory was crafted based on the White middle class, it neglects the realities of other race groups.This helps form the basis of systemic racism, forcing other races to deal with a system that doesn’t take their cultural differences into consideration—and be judged negatively for these differences.Learn More:The Psychology of Racism

The communication theory of social exchange says that people communicate with others with the expectation that their communication will be equally reciprocated.For example, if you reach out to someone at a networking event, you might assume that they will respond with the same desire and enthusiasm.Learn More:Communication in Relationships

The communication theory of social exchange says that people communicate with others with the expectation that their communication will be equally reciprocated.For example, if you reach out to someone at a networking event, you might assume that they will respond with the same desire and enthusiasm.

Learn More:Communication in Relationships

Typically, being altruistic means giving without expecting anything in return, which contradicts the basis of social exchange. However, research indicates that there are two types of altruism: true and reciprocal.While a true altruist gives solely to give, a reciprocal gives with some expectation of a return.Learn More:What Is Altruism?

Typically, being altruistic means giving without expecting anything in return, which contradicts the basis of social exchange. However, research indicates that there are two types of altruism: true and reciprocal.While a true altruist gives solely to give, a reciprocal gives with some expectation of a return.

Learn More:What Is Altruism?

Some suggest that since social exchange theory was crafted based on the White middle class, it neglects the realities of other race groups.This helps form the basis of systemic racism, forcing other races to deal with a system that doesn’t take their cultural differences into consideration—and be judged negatively for these differences.Learn More:The Psychology of Racism

Some suggest that since social exchange theory was crafted based on the White middle class, it neglects the realities of other race groups.This helps form the basis of systemic racism, forcing other races to deal with a system that doesn’t take their cultural differences into consideration—and be judged negatively for these differences.

Learn More:The Psychology of Racism

7 SourcesVerywell Mind uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.Deausealt M, Walbridge H.Social exchange theory: What is it, and how can it be applied to everyday situations?. University of Southern Maine.Emerson R.Social exchange theory.Ann Rev Sociol. 1976;2:335-62. doi:10.1146/annurev.so.02.080176.002003American Sociological Association.George C. Homans.Thomas A, Gupta V.Social capital theory, social exchange theory, social cognitive theory, financial literacy, and the role of knowledge sharing as a moderator in enhancing financial well-being: from bibiometric analysis to a conceptual framework model.Front Psychol. 2021. doi:10.3389/fpsyg.2021.664638University of Kentucky.Social exchange theory.Paraskevaidis P, Andriotis K.Altruism in tourism: Social exchange theory vs altruistic surplus phenomenon in host volunteering.Ann Tourism Res. 2017;62:26-37. doi:10.1016/j.annals.2016.11.002Landor A, Barr A.Politics of respectability, colorism, and the terms of social exchange in family research.J Fam Theory Rev. 2018;10(2):330-47. doi:10.1111/jifr.12264Additional ReadingCook KS, Cheshire C, Rice ERW, Nakagawa S.Social exchange theory. In: DeLamater J, Ward A, eds.Handbook of Social Psychology. 2013. doi:10.1007/978-94-007-6772-0_3Homans GC.Social Behavior: Its Elementary Forms. Harcourt, Brace.

7 Sources

Verywell Mind uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.Deausealt M, Walbridge H.Social exchange theory: What is it, and how can it be applied to everyday situations?. University of Southern Maine.Emerson R.Social exchange theory.Ann Rev Sociol. 1976;2:335-62. doi:10.1146/annurev.so.02.080176.002003American Sociological Association.George C. Homans.Thomas A, Gupta V.Social capital theory, social exchange theory, social cognitive theory, financial literacy, and the role of knowledge sharing as a moderator in enhancing financial well-being: from bibiometric analysis to a conceptual framework model.Front Psychol. 2021. doi:10.3389/fpsyg.2021.664638University of Kentucky.Social exchange theory.Paraskevaidis P, Andriotis K.Altruism in tourism: Social exchange theory vs altruistic surplus phenomenon in host volunteering.Ann Tourism Res. 2017;62:26-37. doi:10.1016/j.annals.2016.11.002Landor A, Barr A.Politics of respectability, colorism, and the terms of social exchange in family research.J Fam Theory Rev. 2018;10(2):330-47. doi:10.1111/jifr.12264Additional ReadingCook KS, Cheshire C, Rice ERW, Nakagawa S.Social exchange theory. In: DeLamater J, Ward A, eds.Handbook of Social Psychology. 2013. doi:10.1007/978-94-007-6772-0_3Homans GC.Social Behavior: Its Elementary Forms. Harcourt, Brace.

Verywell Mind uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.

Deausealt M, Walbridge H.Social exchange theory: What is it, and how can it be applied to everyday situations?. University of Southern Maine.Emerson R.Social exchange theory.Ann Rev Sociol. 1976;2:335-62. doi:10.1146/annurev.so.02.080176.002003American Sociological Association.George C. Homans.Thomas A, Gupta V.Social capital theory, social exchange theory, social cognitive theory, financial literacy, and the role of knowledge sharing as a moderator in enhancing financial well-being: from bibiometric analysis to a conceptual framework model.Front Psychol. 2021. doi:10.3389/fpsyg.2021.664638University of Kentucky.Social exchange theory.Paraskevaidis P, Andriotis K.Altruism in tourism: Social exchange theory vs altruistic surplus phenomenon in host volunteering.Ann Tourism Res. 2017;62:26-37. doi:10.1016/j.annals.2016.11.002Landor A, Barr A.Politics of respectability, colorism, and the terms of social exchange in family research.J Fam Theory Rev. 2018;10(2):330-47. doi:10.1111/jifr.12264

Deausealt M, Walbridge H.Social exchange theory: What is it, and how can it be applied to everyday situations?. University of Southern Maine.

Emerson R.Social exchange theory.Ann Rev Sociol. 1976;2:335-62. doi:10.1146/annurev.so.02.080176.002003

American Sociological Association.George C. Homans.

Thomas A, Gupta V.Social capital theory, social exchange theory, social cognitive theory, financial literacy, and the role of knowledge sharing as a moderator in enhancing financial well-being: from bibiometric analysis to a conceptual framework model.Front Psychol. 2021. doi:10.3389/fpsyg.2021.664638

University of Kentucky.Social exchange theory.

Paraskevaidis P, Andriotis K.Altruism in tourism: Social exchange theory vs altruistic surplus phenomenon in host volunteering.Ann Tourism Res. 2017;62:26-37. doi:10.1016/j.annals.2016.11.002

Landor A, Barr A.Politics of respectability, colorism, and the terms of social exchange in family research.J Fam Theory Rev. 2018;10(2):330-47. doi:10.1111/jifr.12264

Cook KS, Cheshire C, Rice ERW, Nakagawa S.Social exchange theory. In: DeLamater J, Ward A, eds.Handbook of Social Psychology. 2013. doi:10.1007/978-94-007-6772-0_3Homans GC.Social Behavior: Its Elementary Forms. Harcourt, Brace.

Cook KS, Cheshire C, Rice ERW, Nakagawa S.Social exchange theory. In: DeLamater J, Ward A, eds.Handbook of Social Psychology. 2013. doi:10.1007/978-94-007-6772-0_3

Homans GC.Social Behavior: Its Elementary Forms. Harcourt, Brace.

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