Social Exchange Theory

Social Exchange Theory PowerPoint PPT Presentation


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Social Exchange Theory. Actors are motivated by self-interestActors are rationalBounded rationality. Social Exchange Theory. ConceptsRewards and costsProfit or maximizing utilityComparison level (CL)

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Social Exchange Theory

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1. Social Exchange Theory Assumptions The individual is real (methodological individualism) Key is to understand the individual actor’s motivation

2. Social Exchange Theory Actors are motivated by self-interest Actors are rational Bounded rationality

3. Social Exchange Theory Concepts Rewards and costs Profit or maximizing utility Comparison level (CL) & comparison level for alternatives (CL+)

4. Social Exchange Theory Concepts Exchanges and Equity relations need not be “equal” to be considered “fair” or “just” rationality may not be uniform across social actors Generalizable sources of rewards

5. Social Exchange Theory Propositions Actors in a situation will choose whichever behavior maximizes profit. Actors in situations where there are no rewards will seek to minimize costs

6. Social Exchange Theory Propositions When immediate profits are equal, actors look at long term profits When long term profits are equal, actors look at short term profits

7. Social Exchange & Choice Theoretical Application The number of children per family

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