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SOCIAL EXCHANGE THEORY

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1 SOCIAL EXCHANGE THEORY
John Thibaut & Harold Kelley

2 TRIBUTARIES John von Neumann- games and economic/social behavior: parallel or opposite interest, perfect or imperfect information, rational decision or chance influence. ‘Strategy of anticipation’, or need to take the other actor/s into account. Win lose situations, or the zero-sum game.

3 Cont. John Nash- games are not always zero-sum; interactions include the possibility of mixed motive games. The minimax principle- people seek to maximize benefits and minimize costs.

4 Interdependence Theory
of Thibaut and Kelley

5 Premises and Assumptions
Relational outcomes are linked with the actions of others. Members of the dyad can accurately predict outcomes and will choose the best. Not necessarily win/lose; interdependence implies that we negotiate our moves based on anticipation of the actions of others.

6 PRISONER’S DILEMMA Potential for gain at the others expense.
Also potential for win/win or lose/lose outcome. Both parties want optimum outcome.

7 RESULTS Outcome- rewards minus costs represented by a single number.
Comparison Level (CL)- satisfaction depends on expectation; the threshold above which an outcome seems attractive. Comparison level of alternatives (CLalt)- the worst outcome one will accept and stay in the relationship.

8 Some predictions…. Outcome>CLalt>CL = satisfying, stable, nondependent. CL>CLalt>Outcome = not satisfying, break relationship, continue unhappy. CL>Outcome>CLalt = highly unsatisfying, can’t break away, dependent and unhappy…the Prisoner’s Dilemma.

9 Dependence and Control
Outcomes > CLalt = high dependence. Outcomes < CLalt = low dependence. T and K identify three types of control: reflexive, fate and behavior. These forms are juggled in interdependent relationships. The relationship is not evaluated in an evaluative sense.

10 Collective and Ind Outcomes
Why do people often act in ways that appear contrary to their own interests, even with knowledge of outcome values? T and K see this as evidence of collective, social behavior.

11 Anxiety- reframing the conflict to relieve tension; mentally altering the numbers by redefining the situation. Normative element- turning to collective principle for action when a situation is confusing. Temporal element- focus on future rewards.


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