Social Exchange Theory A01

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Social Exchange Theory

- According to SET, the underlying principle of the formation of relationships is that all people are fundamentally selfish.

- We view our feelings for others in terms of profits (rewards minus costs.)

- Costs include the cost of money, time, embarrassment.

- Rewards include gaining access to money, love, attention.

- The greater the rewards and the lower the costs the more likely we are to form (maintain) a relationship. If the costs outweigh the rewards we are not likely to form a relationship, or the relationship will be in a state of loss, and maintenance will be at risk (or it will breakdown.)

- Thibaut and Kelly argued that our assessment of the potential costs and rewards involved in forming (maintaining) a relationship depend on what we have come to expect from previous relationships.

- In other words, we have a comparison level (CL) which represents what we believe we deserve based on past experiences.

- If we have had negative past experiences we will expect negative things from current/future relationships.

- Additionally, we also weigh up the costs and rewards that might be expected if we were to form a relationship with someone else, known as the comparison level for alternatives (CLalt.)

- If the CL stated a relationship may not be rewarding, or the CLalt offers a viable more attractive alternative, the relationship will either not be formed, not be maintained/breakdown.