Editing Social exchange theory (section)

==Basic concepts==
Social exchange theory views exchange as a social behavior that may result both in economic and social outcomes.<ref name="Lambe, C. Jay 2001">{{cite journal |doi=10.1300/J033v08n03_01|title=Social Exchange Theory and Research on Business-to-Business Relational Exchange|journal=Journal of Business-to-Business Marketing|volume=8|issue=3|pages=1–36|year=2001|last1=Lambe|first1=C. Jay|last2=Wittmann|first2=C. Michael|last3=Spekman|first3=Robert E.|s2cid=167444712}}</ref> Social exchange theory has been generally analyzed by comparing human interactions with the marketplace. The study of the theory from the microeconomics perspective is attributed to Blau.<ref name=Cook/> Under his perspective every individual is trying to maximize his wins. Blau stated that once this concept is understood, it is possible to observe social exchanges everywhere, not only in market relations, but also in other social relations like friendship.<ref>{{cite journal |jstor=4193943 |doi=10.1177/000169937301600303 |title=A Structural Theory of Social Exchange |journal=Acta Sociologica |volume=16 |issue=3 |pages=188–208 |year=1973 |last1=Burns |first1=T. |s2cid=145312110 }}</ref> Social exchange process brings satisfaction when people receive fair returns for their expenditures. The major difference between social and economic exchange is the nature of the exchange between parties. Neoclassic economic theory views the actor as dealing not with another actor but with a market and environmental parameters, such as market price.<ref>{{cite book|last1=Cook|first1=Karen S.|first2=Richard Marc|last2=Emerson|title=Social exchange theory|location=Beverly Hills, Calif.|publisher=SAGE Publications|year=1987|isbn=0803925980}}{{page needed|date=October 2014}}</ref> Unlike economic exchange, the elements of social exchange are quite varied and cannot be reduced to a single quantitative exchange rate.<ref name="georgetown2005">"SOCIAL EXCHANGE THEORY." Encyclopedia of Public Relations. Thousand Oaks: Sage Publications, 2005. Credo Reference. 9 Feb. 2010. Web. 2 Nov. 2013. <http://www.credoreference.com/entry/sagepr/social_exchange_theory>.</ref> According to Stafford, social exchanges involve a connection with another person; involve trust and not legal obligations; are more flexible; and rarely involve explicit bargaining.<ref>{{cite book
 | last=Stafford | first=Laura
 | year=2008
 | chapter=Social Exchange Theories |chapter-url=https://books.google.com/books?id=HWLXu63TQWQC&pg=PA377 |editor1-first=Leslie A. |editor1-last=Baxter |editor2-first=Dawn O. |editor2-last=Braithwaite |title=Engaging theories in interpersonal communication:Multiple perspectives |pages=377–89
 | publisher=Thousand Oaks| isbn=9781412938525
 }}</ref>

===Cost and rewards===
Simple social exchange models assume that rewards and costs drive relationship decisions.<ref name="georgetown2005"/> Both parties in a social exchange take responsibility for one another and depend on each other. The elements of relational life include:

'''Costs''' are the elements of relational life that have negative value to a person, such as the effort put into a relationship and the negatives of a partner.<ref>{{cite book
 | last1=West | first1=Richard
 | last2=Turner | first2=Lynn
 | year=2007
 | title=Introducing Communication Theory
 | pages=186–7
 | publisher=McGraw Hill}}</ref> (Costs can be time, money, effort etc.)

'''Rewards''' are the elements of a relationship that have positive value. (Rewards can be sense of acceptance, support, and companionship etc.)

As with everything dealing with the social exchange theory, it has as its outcome satisfaction and dependence of relationships. The social-exchange perspective argues that people calculate the overall worth of a particular relationship by subtracting its costs from the rewards it provides.<ref>{{cite book
 | last1=P.R. | first1=Monge
 | last2=N. | first2=Contractor
 | year=2003
 | title=Theories of communication networks
 | publisher=Oxford University Press}}{{page needed|date=October 2014}}</ref>

:{{math|Worth {{=}} Rewards − Costs}}

If worth is a positive number, it is a positive relationship. On the contrary, a negative number indicates a negative relationship. The worth of a relationship influences its outcome, or whether people will continue with a relationship or terminate it. Positive relationships are expected to endure, whereas negative relationships will probably terminate. In a mutually beneficial exchange, each party supplies the wants of the other party at lower cost to self than the value of the resources the other party provides. In such a model, mutual relationship satisfaction ensures relationship stability.<ref name="georgetown2005"/>

:{{math|Outcome {{=}} Rewards − Costs}}
Homans based his theory on [[behaviorism]] to conclude that people pursue rewards to minimize costs.  The "satisfactory-ness" of the rewards that a party gains from an exchange relationship is judged relative to some standard, which may vary from party to party.<ref name="Lambe, C. Jay 2001"/>

=== Reciprocity norm ===
Summarized by Gouldner, the [[Reciprocity norm (negotiation)|reciprocity norm]] states that a benefit should be returned and the one who gives the benefit should not be harmed. This is used to stabilize relationships and to identify egoism. This norm suggests independence in relationships and invite the individual to consider more than one's self-interest.<ref name=":1">{{Cite web|url=https://search.credoreference.com/content/entry/estappliedpsyc/reciprocity_norm/0|title=Encyclopedia of Applied Psychology|last=Spielberger|first=Charles Donald|date=2004|access-date=2018-12-08}}</ref>

=== Social penetration theory ===

Altman and D. Taylor introduced [[social penetration theory]], which studies the nature and quality of social exchange and close bonds. It suggests that once the individuals start to give more of their resources to one another, relationships evolve progressively from exchanging superficial goods to other, more meaningful exchanges. It progresses to the point called "self-disclosure", where the individuals share innermost thoughts and feelings with one another.<ref name=":1" />

=== Equity and inequity ===
In this process, the individuals will compare their rewards with others' in relation to their costs. Equity can be defined as the balance between a person's inputs and outcomes on the job. Some examples of inputs can be qualifications, promotions, interest on the job and how hard one works. Some outcomes can be pay, fringe benefits, and power status. The individual will mainly expect an equitable input-outcome ratio. Inequity happens when the individual perceives an unbalanced ratio of their outcomes and other's outcomes. This can occur in a direct exchange of the two parties, or there can be a third party involved. An individual's point of view of equity or inequity can differ depending on the individual.<ref name=":1" />