Social exchange theory originated in the 1950s through the work of George Homans. It aimed to combine principles of behaviorism, economics, and other ideas to explain human behavior using "natural laws". Homans proposed five propositions about human behavior: the success, stimulus, value, deprivation-satiation, and aggression-approval propositions, which posit that behaviors are determined by rewards and costs based on past experiences. Social exchange theory views human behavior and social interactions as rational exchanges between parties seeking to maximize benefits.

2. • Originated during 1950s, primarily through George
Homans.
• Illustrates effort to fuse the principles of behaviorism and
economics with other ideas and apply them to the
concerns of sociologists.
• Assumes that human behavior can be explained by
natural “laws.”

3. 1. Cultural Anthropology
• Culture is unique, especially in social rituals
• Homans concluded societies are not unique and act
towards common goals and aspirations for their
interactions with others
2. Psychological Behaviorism
• B.F. Skinner, viewed social theories as “mystical
enterprises.” Distracted sociologists from concrete
entities of study.
• Stimulus-Response notion. When a subject is presented
with a stimulus, a response is automatically triggered.

4. • Homans’s sociology builds on a theory about social life
from the behavioristic propositions of Skinner’s
Psychology of operant conditioning.
• Exchange Theory is deterministic and there are two types
of determinism.
• Strong Ontological (nature of being).
• Weak epistemological (nature of knowing).
• Denies conscious beings.

5. • Basic economic theory rests on certain premises about
individual psychology and their implications for peope’s
behavior.
• Rational Choice Theorists developed four basic
propositions.
• Four basic propositions
• Individuals are rational profit maximizers, making
decisions on the basis of their tastes and preferences.
• The more of something one has, the less interested he or
she will be in more of it.
• Prices are set by tastes of buyers and sellers. Greater
the demand, the higher its price will be.
• Goods are more expensive if sold by a monopolist than if
supplied multiple firms in competition with each other.

6. The Five Propositions of All Human Behavior
• The Success Proposition: If an activity was previously rewarded,
then the individual is more likely to repeat the activity again.
• The Stimulus Proposition: Principle of experience. If a similar
stimulus presents itself and resembles an originally awarded activity,
the individual is likely to repeat that course of action.
• The Value Proposition: Principle of value of outcome. The more
valuable to an individual a unit of the activity another gives him/her,
the more often he/she will emit the activity rewarded by the activity of
the other. (watching football)
• The Deprivation-Satiation Proposition: Principle of diminishing
returns. Someone who goes a long time without a desired reward
becomes far more willing to engage in behavior that will lead to
desired reward. (Being away from loved ones)
• The Aggression-Approval Proposition: When a behavior does not
receive expected reward, the response is anger or aggression.
(Students grades)

7. • Homans felt that a person who influences other members
has authority.
• An individual earns authority by acquiring esteem and
acquires esteem by rewarding others.
• Power can be defined as the ability to provide valuable
rewards.
• When directing others, the leader inevitably causes the
members to incur costs. The leader’s incurring costs will
help prevent conflict.
• Example: If employees are asked to work late, they will
be less upset if the boss also stays and works late.

8. • The study of power in groups in relationships will always
be relevant in sociological theory.
• Blau and Cook, along with other theorists have attempted
to bridge the micro-macro divide.
• All social theories take different approaches to their study
of human behavior for example: symbolic interactionism,
ethnomethodology, and phenomenology.
• Social Exchange Theory is one of the most relevant
theories in explanation of human behavior.