An analysis of the social exchange theory in applying the economic concept of exchange

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Please try again. We cannot achieve our goals alone so as humans sometimes we have to become actors. The fundamental concept of the theory of social exchange is cost and rewards.

An analysis of the social exchange theory in applying the economic concept of exchange

He contributed to the social exchange theory finding the role and function of markets in tribal subsistence economies, makes a distinction of economic redistribution and market exchange from social relationships. According to this theory, developed by sociologist George Homans, people weigh the potential benefits and risks of social relationships. To recap, the theory of social exchange is important to understand human interaction and decision making. Positive relationships are expected to endure, whereas negative relationships will probably terminate. The measurement of the pluses and minuses of a relationship may produce data that can determine if someone is putting too much effort into a relationship. Kelley — , the American sociologists George C. Polanyi[ edit ] He proposes three principles to create a new idea for socioeconomic change, transforming traditional economies, and political economic development. The Social Exchange Theory is something that everyone should understand and incorporate into how they make decisions. Blau's utilitarian focus encouraged the theorist to look forward, as in what they anticipated the reward would be in regards to their next social interaction. How Social Exchange Theory Works Most relationships are made up of a certain amount of give-and-take, but this does not mean that they are always equal. By studying such forms of behavior he hoped to illuminate the informal sub-institutional bases of more complex social behavior, typically more formal and often institutionalized.

Costs are the negative consequences of a decision, such as time, money and energy. Another common form of exchange is negotiated exchange which focuses on the negotiation of rules in order for both parties to reach a beneficial agreement.

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Malinowski[ edit ] With his Kula exchange, Malinowski drew a sharp differentiation between economic exchange and social exchange. In fact, the negative costs of social disapproval are more severe in collective Asian cultures. The fourth proposition: the Deprivation-satiation proposition believes that if an individual has received the same reward several times, the value of that reward will diminish.

By studying such forms of behavior he hoped to illuminate the informal sub-institutional bases of more complex social behavior, typically more formal and often institutionalized. Evaluating the Alternatives Another aspect of the social exchange process involves looking at the possible alternatives.

Punishments also come in many forms, from extremes like public humiliation, beating, or execution, to subtle gestures like a raised eyebrow or a frown.

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What are your concerns? Thibaut and Kelley have based their theory on two conceptualizations: one that focuses on the nature of individuals and one that describes the relationships between two people.

However, he uses more economics terms and it is based principally on emergent social structure in social exchange patterns in small groups. The Social Exchange Theory is something that everyone should understand and incorporate into how they make decisions.

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Social exchange theory