Social Exchange Theory

As formulated by John Thibaut and Harold Kelley, Social Exchange Theory explains human relationships as economic-like exchanges that maximize rewards and minimize costs. This theory suggests that individuals engage in relationships to gain benefits and reduce burdens, similar to economic transactions. It has been widely applied to various types of relationships, including romantic, professional, and social interactions.

Rewards and Costs in Relationships

Relationship rewards include emotional support, companionship, validation, and shared experiences. These elements contribute positively to a person's well-being and satisfaction. In contrast, costs involve emotional strain, conflict, compromise, and time investment, all of which may negatively influence an individual's perception of the relationship. According to Social Exchange Theory, people continually assess whether the rewards outweigh the costs to decide whether maintaining the relationship is worthwhile.

The Role of Comparison Levels

A relationship's value is evaluated against a personal benchmark known as the Comparison Level (CL). This standard is shaped by past experiences, cultural expectations, and personal desires. If the rewards of a relationship exceed this threshold, the relationship is perceived as satisfying. Additionally, the Comparison Level for Alternatives (CL_alt) evaluates the potential benefits of other relationships or situations. If someone believes better alternatives are available, they may consider ending their current relationship in pursuit of a more rewarding one.

Commitment and the Investment Model

Commitment in a relationship is influenced by three main factors: satisfaction, the availability of alternatives, and investment. Investments include both tangible and intangible contributions, such as time, emotions, shared memories, and material resources. The more someone has invested in a relationship, the harder it becomes to walk away, even when conflicts arise or satisfaction declines. High levels of commitment often lead to relationship persistence, as individuals anticipate long-term benefits despite short-term challenges.

Applications and Limitations

Social Exchange Theory extends beyond personal relationships to influence professional environments, friendships, and collaborations. In today's society, the rise of social media amplifies its relevance, as people often compare their relationships and social standing through online interactions.

However, the theory has its limitations. It assumes that individuals make decisions purely based on rational evaluations, overlooking the roles of emotions, altruism, and social responsibility. Human relationships are complex and often guided by more than simple cost-benefit analyses. Still, Social Exchange Theory offers valuable insights into relationship dynamics, supporting better decision-making in both personal and professional contexts.