Social Exchange Theory

Definition

Social exchange theory suggests that our relationships and interactions with others are based on an analysis of costs (negative outcomes) and benefits (positive outcomes).

Related terms

Cost-Benefit Analysis:

This is a systematic approach to estimating strengths and weaknesses of alternatives used to determine options which provide the best approach to achieving benefits while preserving savings.

Reciprocal Altruism:

This refers to acts of kindness that are done with the expectation that they will be returned in the future.

Equity Theory:

This theory suggests that individuals seek fairness in their relationships, feeling distressed if they feel there is an imbalance.