Exchange tangible and intangible rewards in a relationship

1
SOCIAL EXCHANGE RELATIONSHIPS

• Exchange tangible and intangible rewards in a
  relationship
• Love is linked to exchange of rewards
• Become more committed when it is perceived that
  the value of each persons outcomes equal or
  proportional to the value of our investments

2

• Equity is valued
• But, Equity may be destabilizing as it recognizes
  status differentials, and
• therefore, people in relationships do not have
  the same value
• Relationships develop because rewards are
  reinforcing and are greater than costs

3
INTERDEPENDENCY

• Rewards must promote interdependency for
  relationship to progress to more intimate levels
• Interdependence -- extent to which ones
  outcomes --returns-- depend on outcomes received
  by partner, and
• degree to which each ones profits are greater
  than likely in another relationship.

4
Self Interest Anchors Relationships

• We seek out those we anticipate will be rewarding
• We need to provide rewards to get rewards
• Reciprocity of rewards important
• Seek out only those partners who are
• a) attractive to us
• b) likely to reciprocate

5

• Relationships often fail to progress beyond
  initial encounters because
• Types of rewards are readily available from a
  number of sources (e.g., approval for
  information)
• Not profitable enough to assume cost of increased
  involvement

6
WHAT IS A REWARD?

• Dont always know in advance - often ex post
  facto - tautology - a reward is rewarding
• Rewards can be costs as well (e.g., assistance
  from another)
• Social Approval is not always rewarding (e.g.,
  compliments from unappealing person)
• How are values determined? How much love how
  much information?

7
WHAT IS FAIR?

• Does fair mean Equitable?
• What is equitable?
• What Decision Rules might define equitable?

8
Fairness Decision Rules

• Maximize joint profits (Cooperative Behavior)
• Maximize others profits (altruism)
• Maximize difference between own others profits
  (e.g., elites)
• Keep relative distance the same (status
  consistency)
• Contribution rule (outcomes match contribution)
• Need Rule (outcome matches needs)
• Equality (divide equally)

9
Limitations of Social Exchange Theories

• Are people really that self-interested?
• Is altruism really self-interest
• Are people really that calculating
• assumes active and highly aware
• Are people that goal oriented?
• assumes intent to maximize profits
• assumes we interact because others control
  valuables/necessities
• assumes to induce rewards must give rewards