Social Exchange Theory

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Social Exchange Theory is a theory based on the exchange of rewards and costs to measure the values outcomes from different situations for an individual. People strive to minimize costs and maximize rewards and then base the likeliness of developing a relationship with someone on the perceived possible outcomes. When these outcomes are perceived to be greater, we disclose more and develop a closer relationship with that person. This is a humanistic theory because it has intrusive reliability. When you really think about your daily interactions with those closest to you, and think back to how they have evolved; this theory makes logical sense. This isn’t specifically for romantic or deep friendships either, this works in daily life. For example, a rookie NBA basketball player thinks that the benefits of signing with an independent agent would outweigh the costs of signing up with a big firm. He believed the personal attention he would get would benefit him more than being with a large firm and risk going unrecognized. As time went on, the rookie was surprised he wasn’t getting any offers. This caused him to reevaluate his relationship with his agent and ultimately threaten to leave him for a large firm. The rookie eventually chose to continue with the independent agent. In the end, the rookie signed for millions of dollars. His agent set of the contract which ended up being successful for the player. The NBA player based his relationship with his agent on the perceived possible outcomes. All relationships have give and take, although the balance of this exchange is not always equal. Social exchange theory explains how we feel about a relationship with another person as depending on our perceptions of the balance between what we put into the relationship and what we get out of it, the kind of relationship we deserve, and the chances of having a better relationship

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