Social Exchange Theory (BB) – Flashcards

when rewards can only be met through interaction with another person -being loved, respected, socially accepted, etc. -pleasure, satisfaction, gratification and fulfillment of needs

something of value that's given up, withdrawal of a reward, or punishment -can be money, time, energy, work

Reward-Cost The greater the rewards & fewer costs, the greater the profit a person gains

trying to achieve a "fair" trade Equity: based on partners seeking a ratio of rewards and costs that are the same for both partners -Ex: if you're putting more time and effort into a relationship than your partner you'll attempt to create more balance/equity 1. Payback period in a relationship (if borrowed classmate $5 would expect to be paid back next day but would give best friend longer) 2. Assessment of the costs & rewards relative to our partners' abilities to provide them or to the relative "availability of resources"

an outcome of an exchange where the two parties are rewarded proportionate to their costs aka the more you invest, the greater your return

an exchange of goods, material goods but also non-material ones, such as the symbols of approval or prestige OR an exchange of activity, tangible or intangible, and more or less rewarding or costly, between at least two persons

voluntary actions of individuals that are motivated by the returns they are expected to bring and typically do in fact bring from others Intrinsic (love) Extrinsic (help with chores)

1. At the psychological level we use costs and rewards as part of our decision making process. Pros/cons 2. How we use economic principles to manage our interactions with other people - our social exchange. 3. At the relational level we apply economic principles in selecting and evaluating our relationships, weighing their rewards and costs as well as comparing those to alternatives

Social behavior can be explained in terms of costs, rewards, and exchanges

People seek to maximize rewards and minimize costs in pursuit of the greatest profit

Social Interaction involves two parties, each exchanging a reward needed by the other person

Social exchange theory can be used to explain the development and management of interpersonal relationships

monitoring the rewards and costs we are getting at any given moment; aka current outcome/profit

Evaluate the rewards and costs of relationship in terms of how they compare to what we expect or believe we deserve in such a relationship

we compare the rewards & costs of other potential relationships to a given relationship

We assess the future of our relationships, evaluating the potential rewards and costs

the cumulative rewards and costs assessment represents the sum total of the rewards & costs (profits) a person receives over the history of the relationship.

Social exchanges affect the relationships among members of the groups and organizations