1. 2 x Theories

2. Using what you learned on Reward/Need Satisfaction Theory from last lesson. Try and find two possible matches from Match.com. Be prepared to explain why you have matched them based on their rewards/needs.

3. Summarise what we learned about last lesson… What could be today’s lesson objective? Write an example.

4. How will I know if I am learning? By the end of the lesson… E Social Exchange TheoryEquity Theory You will be able to explain what Social Exchange Theory (SET) & Equity Theory say about relationship maintenance. C You be able to apply these theories to real relationships. A You be able analyse what kinds of relationships are ignored by economic theories and begin to evaluate economic theories of relationship maintenance.

5. Social Exchange Theory is an ‘economic theory’ - it takes the view that social relationships are run in a similar way to a business – people are negotiating to get the best deal. rewardingprofitable SET is based on the principles of operant conditioning which suggest we form and maintain relationships because they are rewarding – this means they are profitable because the rewards we receive from the relationship outweigh the costs incurred. If the relationship stops being profitable because the costs outweigh the rewards the relationship will end.

6. balance sheet SET suggests relationships are run like a balance sheet - partners are always trying to maximise their rewards and limit their costs. Satisfaction depends on the ‘outcome’ - the balance between rewards and costs A successful relationship is a profitable one because the rewards outweigh costs, although a state of ‘loss’ will occur if the costs start to outweigh the rewards

7. Calculate how rewarding a current relationship (or friendship) is by assigning a unitary value to the rewards received and the costs incurred from 7 Rewards receivedCosts incurred Value Total value rewards = Value Total value costs = Outcome: 100 love points 50 love points 50 love points in profit

8. The Comparison Level (CL) We each develop a standard against which we compare all our relationships. It is formed based on all of our experiences plus our views of what we might expect to give and receive in a relationship. If we judge the potential profit of a new relationship to exceed our CL the relationship will be judged as worthwhile. If the outcome is negative (profit less than CL) we will be dissatisfied in the relationship. ‘Comparison Level for Alternatives’ Similarly we have a ‘Comparison Level for Alternatives’ where we weigh up a potential increase in rewards from a potential partner, minus any costs involved in ending our current relationship. CLalt

9. Potential relationship Current relationship Profit Comparison level New relationship “What could I have?” “What have I got now?” Profit Comparison level Current relationship

10. Calculate and compare the outcome of a previous relationship with the expected outcome of a potential alternative relationship. Previous Previous Relationship Comparision Level (CL) Alternative Alternative Relationship Comparison Level for Alternatives (CLalt) Rewards Costs Outcome =

11. What do you think these mean? StageDescriptionMnemonic Sampling Bargaining Commitment Institutionalisation Once you have an idea of what they mean try and come up with a mnemonic to help you remember them. E.g. Rainbow: Richard Of York Gave Battle In Vain.

12. What do you think these mean? StageDescription Sampling Bargaining Commitment Institutionalisation Analysing the potential costs and rewards of entering into a relationship with someone. A testing phase of giving and receiving rewards to work out if the new relationship is worth forming. Sampling and bargaining is reduced and attraction to the other person will increase if the costs of being in a relationship are also reduced. A relationship is recognised as having been formed and norms are developed that set the expectation of specific rewards and costs for the relationship for continued success.

13.  Equity ≠ _____  Equity = _____ Inequality distress People strive to achieve fairness in their relationship. Inequality has the potential to cause distress. This happens when one person gives a great deal and gets little in return (inequity). However the same is true of those who receive a great deal and give little in return.

14.  Equity ≠ _____  Equity = _____ Perceived ratio of Inputs and Outputs Inequity doesn’t necessarily mean inequality. Two individuals can put in variable amounts and still maintain equity. This is because a person holds subjective views on the relative inputs and outputs of themselves and their partner. If we fear inequity in our relationship we may try and change our input and outputs to restore equity. We may also compare it to our CL.

15. why might people feel dissatisfied in the following examples? 15 Person is giving more to the relationship than they feel they are getting out of it… Person is getting more out of the relationship than they feel they are giving to it…

16. What do you think these mean? Key TermsDescriptionMnemonic Profit Distribution Dissatisfaction Realignment Once you have an idea of what they mean try and come up with a mnemonic to help you remember them. E.g. Rainbow: Richard Of York Gave Battle In Vain.

17. What do you think these mean? Key TermsDescription Profit Distribution Dissatisfaction Realignment Rewards are maximised and costs minimised. Trade-offs and compensations are negotiated to try and gain fairness. The greater the degree of perceived unfairness, the greater the dissatisfaction. If restoring equity is possible, attempts will be made to restore it and the relationship is maintained.

18. What kind of relationships do Economic Theories fail to account for…?