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 one’s outcome’s --returns-- depend on outcomes received by partner, and
degree to which each one’s 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?
Don’t 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 other’s profits (altruism)
Maximize difference between own & other’s 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