Social Exchange Theory
Social exchange theory proposes that social behavior is the result of an exchange process. The purpose of this exchange is to maximize benefits and minimize costs. According to this theory, people weigh the potential benefits and risks of social relationships. When the risks outweigh the rewards, people will terminate or abandon the relationship.
The foundation of social exchange theory rests on several core assumptions regarding human nature and the nature of relationships. The first assumption is that humans tend to seek out rewards and avoid punishments. Another tenet is the assumption that a person begins an interaction to gain maximum profit with minimal cost — the individual is driven by “what’s in it for me?” A third assumption is that individuals tend to calculate the profit and cost before engaging. Finally, the theory assumes that people know that this “payoff” will vary from person to person, as well as with the same person over time.According to the theory, a worthwhile relationship will be as far away from the cost category as possible. Even if there are a few costs involved in the relationship — and human behavior dictates there probably will be — if enough positive traits outweigh the negative traits, then the costs hold no value.