Exchange Theory

What is the difference between the Comparison Level and the Comparison Level for Alternatives?

A Comparison Level is when similar things/circumstances are compared. A Comparison Level for Alternatives is when different things/circumstances are compared. Comparison Level: compare your marriage with your married peers Comparison Level for Alternatives: compare your married life with your single friends lives

How can you apply the theory?

According to this theory, people weigh the potential benefits and risks of social relationships.

Movie from the Sandlot where a boy pretends to drown in order to kiss the lifeguard What are the rewards and costs?

Are the rewards better than the costs? Who has the most rewards for the least amount of cost?

Explain the Exchange Theory

Choices in relationships are evaluated based on the rewards minus the costs. Reward - cost = profits Social behavior is the result of an exchange process. The purpose of this exchange is to maximize benefits and minimize costs. Most relationships are made up of a certain amount of give-and-take, but this does not mean that they are always equal.

What are some examples that compare the Comparison Level and the Comparison Level for Alternatives?

Comparing your gifts with your siblings is a comparison level because you are receiving gifts from the same sources. Comparing your gifts with the kid from a wealthy family down the street is a comparison level for alternatives because his family has different resources.

RATIONALITY

It is not rationalization 2 people could be put in the same situation and both people because they are rational will make the same decision How do you calculate? Two assumptions: a) given same rewards, costs, weights, actors will make same choice b) what would the average person do?

PROFIT

Ratio of costs to rewards for any decision Reward - cost = profit -involves maximizing profits: reward > cost -minimizing losses: Principle of least costs

EQUITY

We like things to be equal. We feel like we should give to others if they give to us. I'll scratch your back if you scratch mine. If it was not equal and you want to repay them. Principle of equity (norm of reciprocity) is central to maintaining social relationships. Two dimensions: - people should give to those that give to them - people should not injure those who have helped them

What are the two comparison levels?

1. comparison level (CL) - we look at other situations that are similar to ours "relative to others in comparable positions" look at all the costs that I am experiencing compared to others 2. comparison level for alternatives (CL+) - we look at other people that are in a situation we could have chosen "relative to others outside of your position but in positions that supply an alternative choice." (White & Klein, p. 38)

RULE OF DISTRIBUTIVE JUSTICE

2 or more people are involved Whoever has the most costs should receive the most rewards, that would be fair - rewards to each person in a relationship will be proportional to the respective costs of each and that the net result for each person will be proportional to the investment of each in the relationship. - Rule broken o Disadvantaged feel angry o Advantaged feel guilty o Relationship experiences instability Example: group projects at school - people who put in the most time and effort should get the most rewards Example: Marriage - one spouse's family wrote them off because they got married in the church The person with the most costs needs some more rewards so things are fairly distributed. It is proportional