CAE 211:

Linguistics and Communication Theory

SOCIAL EXCHANGE THEORY

Based on the research of John Thibaut and Harold Kelley
I.

INTRODUCTION
Meredith and LaTasha have been best friends since fourth grade. After

elementary school they moved on together to Collins High School. There they suffered
through homework, dating dilemmas, and other typical high school concerns. In
addition, they coped with racial issues because Meredith is European American and
LaTasha is African American. In their hometown of Biloxi Mississippi, the heritage of
racism formed a barrier to their friendship. Both of the young women had worked hard
to maintain their relationship despite their family members objections.
When they were together, they often wondered why race was such a big deal.
They seemed like sisters to each other, closer than many sisters they knew. They had
the exact same sense of humor, enjoyed the same movies and the same subjects in
school, and had similar taste in clothes and boyfriends. But at home they often had to
defend their friendship to their families.
Now that LaTasha and Meredith were entering their senior year at Collins, things
had become more difficult. LaTashas parents were definite that she would be attending
a historically Black college after graduation. Merediths family wanted her to go to a
small college in southern California because both her parents had graduated from this
school. Both LaTasha and Meredith wanted to go to college together or at least
somewhat near each other. Additionally, they resented how much time and energy all
the discussions about college seemed to take up. It was almost ruining their senior year.
When they were together, they could usually forget about all the hassle and just
have fun as usual, but the pressure was taking a toll on their friendship. Although they
tried not to think about it, they both were concerned about the future. They found that
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Linguistics and Communication Theory
talking to each other about college was stressful, so they mainly avoided the subject.
Privately, each wondered what was going to happen and how she would get along next
year without her best friend.
II.

EXPECTATIONS

At the rigid analysis and comprehension on this Study Guide, you are expected to:
Describe the nature and characteristics of Social Exchange Theory
Determine whether a relationship should endure or terminate
Distinguish the different assumptions of Social Exchange
Apply Social Exchange Theory in understanding relationships among people

III. PRE- TEST

Answer the following questions.
1. If you were LaTasha or Meredith, what do you think is the best way to do to save
your relationship with each other?
2. Is the relationship positive or negative? Explain.
3. When do we decide to fight for a relationship and when to terminate or end it?
4. How is Social Exchange Theory applied in understanding the two friends
relationship?

III.

DISCUSSION

Social Exchange Theory

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Social Exchange Theory is based on the notion that people think about
their relationships in economic terms and that they tally up the costs and compare them
to the rewards that are offered by being in each relationship. Costs are elements of
relational life with negative value while rewards are elements of relational life with
positive value
The stress and tension that LaTasha and Meredith feel about the issue of
college are now the costs of their relationship. Their relationship always had the cost of
generating conflict in their respective families. While the fun they have together, the
loyalty they show for each other, and the sense of understanding they share are all
rewards.
Social Exchange theorists argue that people assess their relationships in
terms of cost and rewards. Social Exchange perspective argues that people calculate
the overall worth of a particular relationship by subtracting its cost from the rewards it
provides (Monge & Contractor, 2003). (WORTH = REWARDS COSTS)
Positive relationships are those whose worth is a positive number. That is,
the rewards are greater than the costs. Negative relationships are those with negative
worth. The costs exceed the rewards.
Social Exchange Theory goes even further, predicting that the worth of a
relationship influences its outcome, or whether people will continue with a relationship
or terminate it. Positive relationships are expected to endure, whereas negative
relationships will probably terminate.
John Thibaut and Harold Kelley say every individual voluntarily enters and
stays in any relationship only as long as it is adequately satisfactory in terms of his
reward and costs (1959, p. 37). Social Exchange Theory posits that the major force in
interpersonal relationships is the satisfaction of both peoples self-interest. Self-interest
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is not considered necessarily bad and can be used to enhance relationships.
Interpersonal exchanges are thought to be analogous to economic exchanges where
people are satisfied when they receive a fair return for their expenditure.

Assumptions of Social Exchange Theory

The assumptions that Social Exchange Theory makes about human nature include the
following:

Humans seek rewards and avoid punishments.

Humans are rational beings.
The standards that humans use to evaluate costs and rewards vary over
time and from person to person.
The assumptions that Social Exchange Theory makes about relationships
include the following:
Relationships are interdependent
Relational life is a process.
Humans seek rewards and avoid punishments.
This notion is consistent with the conceptualization of drive reduction
(Roloff, 1981).
This approach assumes that peoples behaviors are motivated by some
internal drive mechanism. When people feel this drive, they are motivated to reduce it,
and the process of doing so is a pleasurable one. If George feels thirsty, he is driven to
reduce that feeling by getting a drink. This whole process is rewarding and, thus, To be
rewarded means that a person had undergone drive reduction or need fulfillment
Humans are rational beings
The theory rests on the notion that within the limits of the information that
is available to them, people will calculate the costs and rewards of a given situation and
guide their behaviors accordingly. This also includes the possibility that, faced with no
rewarding choice, people will choose the least costly alternative.
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In the case of LaTasha and Meredith, it is costly to continue their friendship
in the face of all the stress and family objections, yet both young women may believe
that it is less costly than ending their friendship and denying themselves the support and
affection that they have shared for the past nine years.
James White and David Klein (2002) point out that assuming rationality is
not the same as saying that people engage in rationalization. Social exchange theory
asserts that people use rational thinking to make choices. But when we rationalize, we
attempt to provide an apparently rational justification for [our] behavior after the
behavior occurred. Thus, rationalizing provides a fabricated attempt to make a choice
look rational after the fact.
The standards that humans use to evaluate costs and rewards vary over time and
from person to person
The third assumption suggests that the theory must take diversity into
consideration. No one standard can be applied to everyone to determine what is a cost
and what is a reward.
However, Social exchange theory is a lawlike theory because it claims that
although individuals may differ in their definition of rewards, the first assumption is still
true to all people: We are motivated to maximize our profits and rewards while
minimizing our losses and costs (Molm, 2001).
Relationships are interdependent
Thibaut and Kelley take those three assumptions about human nature from
drive reduction principles that they call game theory. The classic game they developed
that illustrates the first assumption is called the Prisoners Dilemma. This game
supposes that two prisoners are being questioned about a crime they deny committing.

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They have been separated for the questioning , and they are given two options: they
can confess the crime, or they can persist in denials.
The situation is further complicated by the fact that the outcome for them is
not completely in their own hands, individually. Instead, each prisoners outcome is a
result of the combination of their two responses. The configuration of their possible
choices is called a 2x2 matrix because there are 2 of them and they each have 2
options: confess or deny.

The outcomes for Smith and Jones are interdependent. The outcome in
each case depends on the relationship between Smiths and Joness answers.
Relational life is a process
In stating this, the researchers are acknowledging the importance of time
and change in relational life. Specifically, time affects exchanges because past
experiences guide judgments about rewards and costs, and these judgments impact
subsequent exchanges.
For example, if Kathy dislikes school and has a very low opinion of
teachers and then takes a class that exceeds her expectations, and she finds that she
really likes this particular teacher, their relationship and Kathys expectations about

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future relationships with teachers will be shaped by the process. Further, the notion of
process allows us to see that relationships constantly change and evolve.
Social Exchange Theory Application
Social exchange theory has numerous applications to working with
families. It was noted during a brief literature review that social exchange theory has
been applied to the distribution of housework and child caring responsibilities, divorce,
family violence, relationship satisfaction, decisions regarding prenatal care, and
planning for marriage.
Social exchange theory can be used to explain why couples marry and
divorce, have children, make major purchase decisions (house and vehicles), or
relocate the family to a new city. According to exchange theory, we as individuals are
motivated out of self-interest and that we make decisions based on maximizing our
rewards or profits and minimizing our costs. This is the main premise of social exchange
theory.

IV.

POST TEST

Choose the best answer

1. A friendship is a voluntary interpersonal relationship that provides social support.
a. True
b. False
2. Social exchange theory indicates that the rewards of friendship should outweigh the
costs.
a. True
b. False
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3. When families agree that they will talk out problems, this is known as:
a. conversation conformity.
b. conversation orientation.
c. communication orientation.
d. communication conformity.
e. none of the above
4. Celine said she would help her friend Nyiesha move next weekend. When Nyiesha
tries to call Celine to firm up the plans, she doesnt answer her phone. This is an
example of:
a. miscommunication.
b. expectancy violation.
c. social exchange theory.
d. autonomy.
e. balanced exchange.
5. Your entire family still talks about the reunion that happened at Lake Wenatchee in
2005. This is an example of ______________.
a. Communication
b. Boundaries
c. Rituals
d. Shared narratives
e. Rules
6. Your family always has a special pastry at large family functions. This is known as a:
a. rule.
b. boundary.
c. festivity.
d. ritual.
e. none of the above
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7. When one partner says, I would love to hear what happened at work today, it is an
example of which of the strategies for maintaining romantic relationships?
a. positivity
b. openness
c. assurances
d. sharing tasks
e. social networks
8. Staying out of the kitchen when mom is cooking a big family meal is an example of
a. cohesion
b. boundaries
c. expression
d. privacy
e. none of the above
9. Your family is ______________, which is not a characteristic of a chaotic family?
a. impulsive decision-making
b. dramatic shifts in roles
c. erratic leadership
d. highly adaptable
e. unclear roles
10. Every individual in your family pretty much does things his/her own way. This is
known as a ____________ family.
a. high conformity orientation
b. low conformity orientation
c. high conversation orientation
d. low conversation orientation
e. medium conversation orientation
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VI.

REFERENCES

https://en.wikipedia.org/wiki/Social_exchange_theory

http://global.oup.com/us/companion.websites/9780199827428/student/chapt
12/quizzes/

http://study.com/academy/lesson/interdependence-theory-definitionexamples-predictions.html

http://changingminds.org/explanations/theories/social_exchange.htm

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