Social Exchange Theory

Social exchange theory views satisfaction as arising when relationship rewards exceed costs and meet or exceed expectations. Rewards include love, support, and intimacy, while costs involve maintenance efforts, conflicts, and compromises. The comparison level (CL) represents the standard of what individuals believe they should receive and contribute. When actual rewards meet or exceed this personal benchmark, satisfaction increases; unmet expectations cause dissatisfaction.

The comparison level for alternatives (CLalt) refers to the rewards an individual believes are available through pursuing alternative relationships. Unlike the comparison level, which predicts satisfaction, CLalt measures relationship stability and predicts whether a person will remain in a relationship. If someone believes better alternatives exist, they may consider ending their current relationship to pursue a more rewarding option.

Investment includes time, effort, and sacrifices that individuals contribute to a relationship but cannot recover if it ends. Greater investment strengthens commitment and relationship persistence, as individuals anticipate long-term benefits despite short-term challenges. However, high investment can also trap people in unhealthy relationships, making it harder to leave even when satisfaction declines or conflicts arise.

Relationship rewards include emotional support, companionship, validation, and shared experiences that contribute positively to well-being. Costs involve emotional strain, conflict, compromise, and time investment, all of which negatively influence perception of the relationship. People continually assess whether rewards outweigh costs to decide whether maintaining the relationship is worthwhile and satisfying.

Social exchange theory assumes individuals make decisions purely based on rational cost-benefit analyses, overlooking emotions, altruism, and social responsibility. Human relationships are complex and often guided by more than economic calculations. While the theory offers valuable insights into relationship dynamics and supports better decision-making in personal and professional contexts, it cannot fully account for the emotional and social dimensions that drive relationship choices.

Social exchange theory extends to professional environments, friendships, and collaborations, where individuals evaluate rewards and costs in all types of relationships. In today's society, social media amplifies its relevance, as people often compare their relationships and social standing through online interactions. The theory's framework helps explain decision-making across diverse relationship contexts.

The comparison level (CL) serves as a personal benchmark shaped by past experiences, cultural expectations, and personal desires. A high CL leads to higher expectations, while a low CL results in lower ones. Relationship value is evaluated against this standard; when rewards exceed the CL threshold, the relationship is perceived as satisfying and valuable to the individual.