Exchange TheoryExchange Theory

Key ConceptsKey Concepts• Rewards And Costs . . . again!Rewards And Costs . . . again!

• Focus is on the give-and-take of economic transactions: “profit”Focus is on the give-and-take of economic transactions: “profit”• Rewards may be material or symbolicRewards may be material or symbolic• Costs may be punishments or foregone rewardsCosts may be punishments or foregone rewards• Value of costs/rewards is subjectiveValue of costs/rewards is subjective

Exchange Resources (Rewards)• Blau: Personal attraction, social acceptance, social

approval, instrumental services, respect/prestige, and compliance/power

• Foa & Foa: Love, status, services, goods, information, and money

• Merton and Davis: Race and caste• Gonzales & Meyers: Attractiveness, financial security,

expressiveness, instrumentality, sincerity, and sex

“Humans seek rewards and avoid costs”“Humans seek rewards and avoid costs”

Actors behave in ways that increase outcomes they positively value and decrease outcomes they negatively Actors behave in ways that increase outcomes they positively value and decrease outcomes they negatively value.value.

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Physical Attractiveness Success Sincerity

Hetero Male Homo Male Hetero Female Homo Female

Desired Personal CharacteristicsDesired Personal Characteristics

Men want looks and women want successMen want looks and women want success

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Physical Attractiveness Success Sincerity

Hetero Male Homo Male Hetero Female Homo Female

Offered Personal CharacteristicsOffered Personal Characteristics

Women sell looks and men sell successWomen sell looks and men sell success

What White Heterosexual Men Demand Of Their Mates

What White Heterosexual Men Demand Of Their Mates

Note the higher Note the higher requirements for requirements for Black womenBlack women

Key ConceptsKey Concepts• Rewards And Costs . . . again!Rewards And Costs . . . again!

• Focus is on the give-and-take of economic transactions: “profit”Focus is on the give-and-take of economic transactions: “profit”• Rewards may be material or symbolicRewards may be material or symbolic• Costs may be punishments or foregone rewardsCosts may be punishments or foregone rewards• Value of costs/rewards is subjectiveValue of costs/rewards is subjective

• Rational Decision-MakingRational Decision-Making• Unlike SLT, this theory assumes we can look forward AND backwardUnlike SLT, this theory assumes we can look forward AND backward• Rational doesn’t mean “unemotional”Rational doesn’t mean “unemotional”• As with any “rational” choice, we don’t know the actual consequencesAs with any “rational” choice, we don’t know the actual consequences

Key ConceptsKey Concepts• Rewards And Costs . . . again!Rewards And Costs . . . again!

• Focus is on the give-and-take of economic transactions: “profit”Focus is on the give-and-take of economic transactions: “profit”• Rewards may be material or symbolicRewards may be material or symbolic• Costs may be punishments or foregone rewardsCosts may be punishments or foregone rewards• Value of costs/rewards is subjectiveValue of costs/rewards is subjective

• Rational Decision-MakingRational Decision-Making• Unlike SLT, this theory assumes we can look forward AND backwardUnlike SLT, this theory assumes we can look forward AND backward• Rational doesn’t mean “unemotional”Rational doesn’t mean “unemotional”• As with any “rational” choice, we don’t know the actual consequencesAs with any “rational” choice, we don’t know the actual consequences

Key ConceptsKey Concepts• Social Exchange And AlternativesSocial Exchange And Alternatives

• Principle of Least CostsPrinciple of Least Costs• Comparison Levels (CL)Comparison Levels (CL)• Comparison Level For Alternatives (CLalt)Comparison Level For Alternatives (CLalt)

• Social Exchange And PowerSocial Exchange And Power• Power is an actor’s ability to achieve a favorable outcome at the Power is an actor’s ability to achieve a favorable outcome at the

expense of another. It’s a quality of relationships, not individuals!expense of another. It’s a quality of relationships, not individuals!• Power ImbalancesPower Imbalances• Bases Of PowerBases Of Power

• Bases of power are different for different partners in exchangeBases of power are different for different partners in exchange• Bases of power are dependent on alternative partnersBases of power are dependent on alternative partners• Bases of power can be undone by coalitionsBases of power can be undone by coalitions

• Principle of Least InterestPrinciple of Least Interest

Key ConceptsKey Concepts• Social Exchange And AlternativesSocial Exchange And Alternatives

• Principle of Least CostsPrinciple of Least Costs• Comparison Levels (CL)Comparison Levels (CL)• Comparison Level For Alternatives (CLalt)Comparison Level For Alternatives (CLalt)

• Social Exchange And PowerSocial Exchange And Power• Power is an actor’s ability to achieve a favorable outcome at the Power is an actor’s ability to achieve a favorable outcome at the

expense of another. It’s a quality of relationships, not individuals!expense of another. It’s a quality of relationships, not individuals!• Power ImbalancesPower Imbalances• Bases Of PowerBases Of Power

• Bases of power are different for different partners in exchangeBases of power are different for different partners in exchange• Bases of power are dependent on alternative partnersBases of power are dependent on alternative partners• Bases of power can be undone by coalitionsBases of power can be undone by coalitions

• Principle of Least InterestPrinciple of Least Interest