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  • Essay / Social Exchange Theory - 1528

    Social Exchange Theory (SET), a theory based on basic economic principles and relationship evaluation; consisting of four measures and has been debated as to whether or not it is a theory. Richard M. Emerson, a former theorist, suggests that SET is "a framework within which many theories – some micro and some macro – can speak to each other, whether in argument or in mutual support" ( Emerson, 1976, p. 336). . SET is based on how humans evaluate relationships by making rational calculations based on costs and rewards, designed to maximize individual profit. What makes the theory difficult to diagnose is the definition of reward. The theory consists of two economic formulas. The first formula: Rewards – Cost = Net Benefit translates to: Anything beneficial (rewards) minus costs, which may include finances, parenting, family issues or stress, equals net profit. Net benefit determines whether or not a relationship is beneficial to the individual. The second formula is: Result = Rewards – Cost. This means that a relationship will result in a positive outcome if the rewards exceed the costs. A negative outcome is the result of costs exceeding rewards. As we move forward with social exchange theory and examine the criticisms, we will examine economic principles in more detail. First, what needs to be clear are the evaluation measures of social exchange theory. Before discussing theory further, one must understand how theories are evaluated. SET examines four crucial elements of the evaluation process: scope, usefulness, testability, and heurism. First and foremost is the question of scope in evaluating theories. To what extent does the theory describe and explain what it aims for? SET is a broad-based theory that represents the middle of paper...... humans rationalizing rewards, costs, and net profit in a relationship. Relationships vary from friendships to romantic partnerships and even business relationships. There are no definitive answers to SET's measurements, as its breadth leaves a lot of room for heurism. Criticisms and critiques of SET can be argued and elaborated upon. However, researchers and theories may agree or disagree that, like Emerson, social exchange is not a theory at all, but a framework consisting of micro and macro theories. Works Cited Andersen, M. (2000). Sociology: The Essentials (6 ed.). WADSWORTH. Emerson, R. M. (1976). Annual Review of Sociology (Vol. II). Annual reviews. Feist, G. J. (2012). Psychology: making connections. McGraw-Hill Ryerson. Jannik Holthausen. (nd). Scientific review of social exchange theory. Wood, J. T. (2003). Communication theories in action (III ed.). WADSWORTH.