Social Exchange Theory Based Upon Rational Choice

Human beings are social creatures. We live in a society where we interact with others, and our behaviors and actions are influenced by the people around us.

Social exchange theory is a concept that explains how individuals make decisions based on the benefits and costs of their actions. It is based upon rational choice, which is the idea that people make decisions by weighing the pros and cons of their options.

What Is Social Exchange Theory?

Social exchange theory suggests that human interactions are like transactions – people give and receive rewards or punishments from each other in their interactions. Rewards can be anything from material goods to emotional support, while punishments can range from physical harm to social isolation.

The theory suggests that people are more likely to engage in behaviors that bring them rewards and less likely to engage in behaviors that bring them punishments. Individuals will choose to engage in interactions with others if they believe that the benefits outweigh the costs.

Rational Choice Theory

Rational choice theory is based on the idea that individuals make decisions by weighing the pros and cons of different options. People choose actions that they believe will bring them the greatest benefits while minimizing costs.

This theory assumes that individuals have complete information about their options, and they have the ability to evaluate them objectively. It also assumes that individuals act consistently with their preferences, meaning they choose what they most desire.

How Are Social Exchange Theory And Rational Choice Related?

Social exchange theory is based on rational choice because it suggests that individuals make decisions based on a cost-benefit analysis. People evaluate their options by considering what they stand to gain or lose from engaging in certain behaviors or interactions with others.

Both theories assume that people have complete information about their choices and can objectively evaluate them. They also assume that people act consistently with their preferences.

Examples Of Social Exchange Theory In Action

Conclusion

Social exchange theory is a concept that explains how individuals make decisions based on the benefits and costs of their actions.

Both theories assume that people have complete information about their choices and can objectively evaluate them. By understanding these theories, we can gain insight into how individuals make decisions in social situations and interactions.