Social exchange theory proposes that social behavior results from a cost-benefit analysis process where people weigh the costs and benefits of their social relationships. When the costs of a relationship outweigh the rewards, people will terminate or abandon it. According to the theory, people consider factors like time, effort, social support, and fun when determining if a relationship is positive, with benefits outweighing costs, or negative, with costs greater than benefits. The theory was first identified by American sociologist George C. Homans in 1958.

1. Social Exchange Theory
K Shailaja Rao

2. • 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, people weigh the
potential benefits and risks of their social
relationships.
• When the risks outweigh the rewards, they
will terminate or abandon the relationship.

3. • "social behavior as exchange" was first
identified by American sociologist George C.
Homans in 1958.

4. Aspects of Social Exchange Theory
• Costs involve things that you see as negatives,
such as having to put money, time, and effort
into a relationship.
• For example, if you have a friend who always
borrows money from you and does not repay
it, this might be seen as a high cost.

5. • Benefits are things that you get out of the
relationship, such as fun, friendship,
companionship, and social support.
• Your friend might be a bit of a freeloader, but
bring a lot of fun and excitement to your life
• As you are determining the value of the
friendship, you might decide that the benefits
outweigh the potential costs.

6. • Positive relationships are those in which the
benefits outweigh the costs.
• Negative relationships occur when the costs
are greater than the benefits.

7. Impact of Social Exchange on
Relationships
• The Honeymoon Phase
• The length of a friendship or romance can play
a role in the social exchange process. During
the early weeks or months of a relationship,
often referred to as the "honeymoon phase,"
people are more likely to ignore the social
exchange balance.

8. Evaluating the Alternatives
• Another aspect of the social exchange process
involves looking at possible alternatives. After
analyzing the costs and benefits and contrasting
these against your comparison levels, you might
start to look at other options.
• The relationship might not measure up to your
comparison levels, but as you survey the
potential alternatives, you might determine it is
still better than anything else available.

9. Equity Determines Health
• Since social exchange theory is based on give and
take, if this back and forth exchange is not
considered equitable, it can affect the health of
the relationship.
• If this type of exchange happens only once or
twice, it likely won't impact the relationship.
• However, if it becomes a pattern, feelings of
resentment and guilt can start to build, creating a
point of contention between the two.

10. What is social exchange theory in
communication?
• The communication theory of social exchange
says that people communicate with others
with the expectation that their
communication will be equally reciprocated.
• For example, if you reach out to someone at a
networking event, you might assume that they
will respond with the same desire and
enthusiasm.