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Further information: Social Exchange Theory
Social penetration theory states that humans, even without thinking about it, weigh each relationship and interaction with another human on a reward cost scale. If the interaction was satisfactory, then that person or relationship is looked upon favorably. But if an interaction was unsatisfactory, then the relationship will be evaluated for its costs compared to its rewards or benefits. People try to predict the outcome of an interaction before it takes place. Coming from a scientific standpoint, Altman and Taylor were able to assign letters as mathematical representations of costs and rewards. They also borrowed the concepts from Thibaut and Kelley's in order to describe the relation of costs and rewards of relationships. Thibaut and Kelley's key concepts of relational outcome, relational satisfaction, and relational stability serve as the foundation of Irwin and Taylor's rewards minus costs, comparison level, and comparison level of alternatives. A major factor of disclosure is an individual calculation in direct relation to benefits of the relationship at hand. Each calculation is unique in its own way because every person prefers different things and therefore will give different responses to different questions. An example in order to show how rewards and costs can influence our behaviour is for example if an individual were to ask another individual on a date, if they say 'yes' then the first individual has gained a reward, making them more likely to repeat this action. However if they reply with 'No', then they have received a punishment which in turn would stop them from repeating an action like that in the future. The more you disclose to your partner the greater intimacy reward you will receive. When the individuals who are involved in the relationship hold positive values in this calculation intimacy proceeds at an accelerated rate. In the relationship if you and your partner are dyad the cost exceeds the rewards. The relationship then will slow considerably, and future intimacy is less likely to happen. The basic formula in which some can process this in most situations is: Behaviour (profits) = Rewards of interaction – costs of interaction.

Outcome
This means that people want to maximize their rewards and minimize their costs when they are in a relationship with somebody. According to Altman and Taylor, relationships are sustained when they are relatively rewarding when the outcome is positive and discontinued when they are relatively costly (when the outcome is negative). Outcome = Rewards – Costs

Comparison level
The first standard that we use to evaluate the outcomes of a situation is comparison level. As defined by Thibaut and Kelley, comparison level is the standard by which individuals evaluate the desirability of group membership. A group is defined as “two or more interdependent individuals who influence one another through social interaction." In this instance, the group refers to a dyadic relationship, but it can really be extended to any type of group. "A person's comparison level (CL) is the threshold above which an outcome seems attractive".[1] That is, when groups fall above the CL they are seen as being satisfying to the individual, and when they fall below the CL they are seen as being unsatisfying. We take an average of outcomes from the past as a benchmark to determine what makes us happy or sad so that we may develop the threshold, or comparison level, in which an outcome appears attractive. Our past experiences really do shape our thoughts and feelings about developing relationships with people, and in this way, an individual’s CL is very much influenced by these previous relationships.

Comparison level of alternatives
Comparison level only predicts when we are satisfied with membership in a given relationship, or group. Therefore, Thibaut and Kelley also say that people use a comparison level for alternatives to evaluate their outcomes. Basically, CLalt is determined by "the worst outcome a person will accept and still stay in a relationship." As such, comparison level for alternatives is a better predictor for whether or not a person will join or leave a relationship, or group. However, even if a relationship is unhealthy a person might choose to remain in it because it is better than what they perceive the real world to be.