Social exchange theory

• Social exchange theory

  -is classed as the economic 'theory of relationships'.

  -proposed by Thibaut and Kelly

  -individuals seek exchanges which maximise rewards (things like companionship, sex and support) and minimise costs (things like time, money and effort). --> this is known as the min-max principle.
• Satisfied or dissatisfied in the relationship

  -When both individuals receive greater rewards than investment cost in the relationship, they feel satisfied in the relationship. If these exchanges remain stable then their is minimal chance of a breakup.

  -If individuals are exchanging high costs for little reward the individual may feel dissatisfied with the exchange which causes instability in the relationship.
• The comparison level

  The CL refers to an individuals subjective sense of how much reward they expect for their invested costs.

  -If rewards fall significantly below the individuals CL level then the person feels dissatisfied.

  -If rewards exceed the individuals CL level then the person feels satisfied.

  -CL is subjective and influences someone's self-esteem and past relationships. For example, some has left an abusive relationship will have low esteem and a low CL level so will be more satisfied when people give them less rewards.
• Comparison level of alternatives

  -The individual compares the current partner against other possible exchanges in alternative relationships or consider being single.

  -If individual perceives they could gain greater reward for the same or less costs then they will go with an alternative partner or be single. This leads to dissatisfaction in the current couple.
• According to SET:

  -Most satisfied and stable relationships are the ones that produce a high level of rewards from little investment costs

  -These relationships produce rewards which meet or exceed individuals comparison level and no alternative relationship is better.

  -An unsatisfactory and unstable relationship is one where costs significantly exceed the rewards.

  -Level of reward usually falls below individuals comparison level and perceive alternatives or being single would produce the same if not more rewards.