Social Exchange Theory

Social exchange theory (SET) is the name given to a family of approaches for understanding those social relations in which reciprocal exchange plays a significant role. SET was a major theoretical orientation in American sociology during the 1970s, although it has earlier historical origins. SET continues to attract sociological attention. Its early exponents developed SET cross‐disciplinarily, drawing on either behavioral psychology or neoclassical economic theory. The endeavor to develop a macro‐sociology of social structure on the micro‐foundations of social exchange relations is critically reviewed here. The analysis of social exchange as premised on the participating actors' self‐interest is also critically reviewed. The importance of obligation and social esteem in exchange relations is emphasized. It is shown that a number of rules of exchange other than those based on the self‐interested maximization of individual satisfactions can be identified. Finally, it is shown that a number of different types of resources, displaying different characteristics, are deployed in social exchange.