SOCIAL EXCHANGE & RELATIONSHIPS

1. SOCIAL EXCHANGE & RELATIONSHIPS • Exchange tangible and intangible rewards in a relationship • Love is linked to exchange of rewards • Become more committed when it is perceived that the value of each persons outcomes equal or proportional to the value of our investments

2. Equity is valued • But, Equity may be destabilizing as it recognizes status differentials, and • therefore, people in relationships do not have the same value • Relationships develop because rewards are reinforcing and are greater than costs

3. INTERDEPENDENCY • Rewards must promote interdependency for relationship to progress to more intimate levels • Interdependence -- extent to which one’s outcome’s --returns-- depend on outcomes received by partner, and • degree to which each one’s profits are greater than likely in another relationship.

4. Self Interest Anchors Relationships • We seek out those we anticipate will be rewarding • We need to provide rewards to get rewards • Reciprocity of rewards important • Seek out only those partners who are: • a) “attractive” to us • b) likely to reciprocate

5. Relationships often fail to progress beyond initial encounters because • Types of rewards are readily available from a number of sources (e.g., approval for information) • Not profitable enough to assume cost of increased involvement

6. WHAT IS A REWARD? • Don’t always know in advance - often ex post facto - tautology - a reward is rewarding • “Rewards” can be costs as well (e.g., assistance from another) • Social Approval is not always rewarding (e.g., compliments from unappealing person) • How are values determined? How much love; how much information?

7. WHAT IS FAIR? • Does fair mean Equitable? • What is equitable? • What Decision Rules might define equitable?

8. Fairness Decision Rules • Maximize joint profits (Cooperative Behavior) • Maximize other’s profits (altruism) • Maximize difference between own & other’s profits (e.g., elites) • Keep relative distance the same (status consistency) • Contribution rule (outcomes match contribution) • Need Rule (outcome matches needs) • Equality (divide equally)

9. Limitations of Social Exchange Theories • Are people really that self-interested? • Is altruism really self-interest • Are people really that calculating • assumes active and highly aware • Are people that goal oriented? • assumes intent to maximize profits • assumes we interact because others control valuables/necessities • assumes to induce rewards must give rewards