What Is the Social Exchange Theory?

The social exchange theory, also called the communication theory of social exchange, suggests that human beings make social decisions based on perceived costs and benefits. This hypothesis asserts that people evaluate all social relationships to determine the benefits they will get out of them. It also suggests that someone will typically leave a relationship if he or she perceives that the effort, or cost, of it outweighs any perceived advantages. This premise of social psychology is rooted in economics, rational choice theory, and structuralism.

The social exchange theory uses economic terms such as benefit, gain, cost, and payment to describe social situations. According to this supposition, people consciously and unconsciously evaluate every social situation in terms of what they will have to put into it, and relate this to the benefits they think they may get out of it. The greater the potential benefit, the greater the personal investment an individual may make in a relationship.

According to social exchange theory, people make these decisions based on their individual satisfaction level within the relationship. Individuals typically have a high level of happiness if they perceive that they are receiving more than they are giving to a relationship. If, on the other hand, individuals feel that they are giving more than they are receiving, they may decide that the connection is not fulfilling their needs.

Whether a person ends a relationship that he or she feels is not worth the social investment often depends on the options he or she thinks are available. Individuals who think that they could fare better in other relationships are more likely to leave such high-cost social situations. If a person feels that there are no better options than the costly relationship, he or she is more likely to stay in the situation.

This social exchange theory is considered by many psychologists to be highly individualistic, which means that it assumes that the individual assesses all human social interactions based on his or her personal gain. This supposition denies the existence of true altruism. It also suggests that all decisions are made from a self-serving motivation, even generosity.

According to the social exchange theory, people will only be generous if they expect some personal benefit to come to them because of it. Examples of personal gain from self sacrifice can include a show of gratitude from the recipient or the approval of the donor’s peer group. This idea emphasizes the anticipated return for such good deeds, also called reciprocity, as expressed in the phrase, I’ll scratch your back, and you’ll scratch mine.