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Sociology 545 Fall, 2005 Professor Schutte

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Exchange Theory Definition: “The process of actors rationally calculating mutual outcomes such that the equilibrium state of interaction for each of the participants is both maximally profitable and equitable”

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Exchange Theory Behaviorism – Skinner Classical Economics – Keynes Anthropology – Malinowski: Game Theory – von Neumann Tributaries:

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Exchange Theory Schools of Thought: Principles - George Homans Power - Peter Blau Participation - Thibaut and Kelley

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Exchange Theory George Homans – The Principles George Homans – The Principles 1. Profit = Rewards – Costs. 2. Distributive Justice => Ar/Ac = Br/Bc

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Exchange Theory Blau – The Power Blau – The Power 1.Diminishing Marginal Utility 2.Intangibility =>Trust 3. Power => sanctions => Coercion

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Exchange Theory Thibaut & Kelley – The Participation Thibaut & Kelley – The Participation 8-5 A B 50 Cooperative Non-zero Sum 5 10 -50 Non-Cooperative Non-Zero Sum 8 -5 5 0 T>R>P>S and 2R>T+S>2P RS A B TP Generically R S T P 5 10 -5 0 B A

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Exchange Theory 88 B 33 A’s Reflexive Control 11 66 A’s Fate Control A’s Behavior Control 23 51 A Thibaut and Kelley – The Participation

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Introduction to Game Theory Yale Braunstein Spring 2007.

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