Social exchange theory (SET) is the name given to a family of approaches for understanding those social relations in which reciprocal exchange plays a significant role. … The endeavor to develop a
macro-sociology
of social structure on the micro-foundations of social exchange relations is critically reviewed here.
The basic definition of social exchange theory is that
people make decisions by consciously or unconsciously measuring the costs and rewards of a relationship or action
, ultimately seeking to maximize their reward. … Each person wants to get more from an interaction or relationship than they give.
Is exchange theory Micro?
Within the broad macro camp, two perspectives dominate: functionalism and conflict theory. Within the micro camp, two other perspectives exist: symbolic interactionism and
utilitarianism
(also called rational choice theory or exchange theory) (Collins, 1994). … Functionalism is a macro theory.
History and Definition of the Theory
Social exchange theory is a concept based on the
notion that a relationship between two people is created through a process of cost-benefit analysis
. In other words, it’s a metric designed to determine the effort poured in by an individual in a person-to-person relationship.
Is Exchange rational choice macro or micro?
Exchange theory is an application of rational choice theory to social interactions. Exchange theory treats society as a series of interactions between individuals such as those in a family, workplace or parenting so is
micro-sociological
in scale.
What is micro-level theory?
Micro-level theories
describe people and their relationships
. These theories encompass the studies of how individuals change as they age. … Macro-level theories look at social institutions, social systems, and whole societies. These theories examine the way that social institutions shape experiences and behavior.
Is Marxism a macro or micro theory?
Macro theories are large scale theories – what postmodernists call grand narratives – about society. They are structural theories such as functionalism and Marxism. They contrast with
micro theories
(action theories).
Social exchange theory proposes that social behavior is the result of an exchange process. The purpose of this exchange is
to maximize benefits and minimize costs
. According to this theory, developed by sociologist George Homans, people weigh the potential benefits and risks of social relationships.
ADVANTAGES OF SOCIAL EXCHANGE THEORY
It explains that
individuals minimize their costs and maximizes their rewards within a relationship
. It tells one how to sustain and keep relationships. It is a timely and systematic approach. The theory is almost applicable in all situations.
Social exchange theory is essentially
a cost-benefit analysis that evaluates the risks and rewards of pursuing or continuing a relationship
. Social exchange theory is used to explain people’s actions in a variety of settings and within a multitude of relationships. Related: How to Manage Employees.
What are the differences between social and economic exchanges?
Social exchanges opposed to economic exchanges involve a connection with another person
; social exchanges involve trust, not legal obligations; social exchanges are more flexible and rarely involve explicit bargaining.
Rewards can consist of
anything tangible or intangible that an individual considers valuable
. For instance, business relationships may provide several concrete benefits, such as income or material goods, in addition to several more abstract benefits, such as prestige and a sense of security.
The exchange theory of aging, proposed by James Dowd in 1975, is
a social theory that addresses a perceived loss of status and power associated with aging
. … Rewards could be in the form of currency, information, goods, services, respect, power, social support, social acceptance, social approval, etc.
What are the three assumptions of rational choice theory?
They differ on three dimensions:
(1) the type of rationality, (2) preference, and (3) individualism assumptions
.
What is an example of rational choice theory?
The idea that individuals will always make rational, cautious and logical decisions is known as the rational choice theory. An example of a rational choice would be
an investor choosing one stock over another because they believe it offers a higher return
. Savings may also play into rational choices.
What is the difference between exchange theory and rational choice theory?
The main difference between rational choice theory and exchange theory is that
rational theory states that individuals use logical calculations to make rational choices and achieve results that are aligned with their own personal goals
whereas social exchange theory states that social interactions are based on a system …
