BUS210: Business Communication

Social exchange theory falls under the symbolic interaction perspective. The theory describes, explains, and predicts when and why people reveal certain information about themselves to others. The social exchange theory uses Thibaut and Kelley's (1959) theory of interdependence. This theory states that "relationships grow, develop, deteriorate, and dissolve as a consequence of an unfolding social-exchange process, which may be conceived as a bartering of rewards and costs both between the partners and between members of the partnership and others". Social exchange theory argues that the major force in interpersonal relationships is the satisfaction of both people's self-interest.

According to the theory, human interaction is analogous to an economic transaction, in that an individual may seek to maximize rewards and minimize costs. Actions such as revealing information about oneself will occur when the cost-reward ratio is acceptable. As long as rewards continue to outweigh costs, a pair of individuals will become increasingly intimate by sharing more and more personal information. The constructs of this theory include disclosure, relational expectations, and perceived rewards or costs in the relationship. In the context of marriage, the rewards within the relationship include emotional security and sexual fulfillment. Based on this theory Levinger argued that marriages will fail when the rewards of the relationship lessen, the barriers against leaving the spouse are weak, and the alternatives outside of the relationship are appealing.