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"Social exchange theory" is a Sociological and Psychological theory that studies the social behavior in the interaction of two parties that implement a cost-benefit analysis to determine risks and benefits. Also, the theory involves economic relationships, it occurs when each party have goods that the other parties value. Social exchange theory suggests that these calculations occur on romantic relationships, friendships, professional relationships and ephemeral relationships as simple as exchanging words with a customer at the cash register.

History
During the beginning of this theory, The most comprehensive social exchange theories are those of the American social psychologists John W. Thibaut (1917-1986) and Harold H. Kelley (1921-2003), the American sociologists George C. Homans (1910-1989), Peter M. Blau (1918-2002), Richard Marc Emerson (? - 1982), and Claude Lévi-Strauss (1908-2009).

Thibaut and Kelley
Thinaut and Kelley based their theory principally on small groups related with dyadic relationships. They used the reward-cost matrices from the Game Theory and discovered some clues of individuals’ interdependence such as the power of a party over each other. Also known as the “correspondence” versus “noncorrespondence” of outcomes. Additionally, they suggest that an individual can unilaterally affect her or his own outcomes in a relationship through chosen behaviors. They could predict the possible course of a social interaction through the analysis of aspects of power in an encounter. They also experimented on how the outcomes received in a relationship could define a person’s attractions to relationships.

Homans
Homans based his theory on concepts of equilibration, expectancy and distribute justice in dyadic exchange. With this, he tries to explain the social interaction in small groups and the rewards received proportional to their costs and investments.

Blau
Blau’s theory is very similar to Homans’. However, he uses more economics terms and it is based principally on emergent social structure in social exchange patterns in small groups. His theory analyzes the development of exchange theory in economics without emphasizing on the psychological assumptions. He contributed to the idea of distinguishing between social and economic exchanges and exchange and power. The goal of his theory was to identify complex and simple processes without ignoring emergent properties.

Emerson
Emerson was inspired by Homans and Blau's ideas. He focused on the interaction and relationship between individuals and parties. His view of social exchange theory emphasizes the resource availability, power, and dependence as primary dynamics. He thought that relations were organized in different manners, and they could differ depending on the type and amour of the resources exchanged. He poses the idea that power and dependence are the main aspects that define a relationship.

Lévi-Strauss
Social exchange theorist in anthropology. He is recognized for contributing to the emergence of this theoretical perspective from his work on anthropology focused on systems of generalized exchange, such as kinship systems and gift exchange. He based his kinship systems on Mauss’s investigation. As it works in the form of indirect reciprocities, Levi-Strauss suggest the concept of generalized exchange.

Reciprocity Norm
Summarized by Gouldner, the reciprocity norm states that a benefit should be returned and the one who gives the benefit should not be harmed. This is used to stabilize relationships and to identify the egoism. This norm suggests the independence in relationships and invite the individual to consider more than one’s self-interest.

Basic concepts

The Social Penetration Theory
I. Altman and D. Taylor’s: They introduce the social penetration theory, which states the nature and quality of social exchange and close bonds. It suggests once the individuals start to give more of themselves to one another, relationships progress progressively from exchanging superficial goods to others more meaningful. It progresses to the point called “self-disclosure”, where the individuals share innermost thoughts and feelings with one another.

Equity and inequity
In this process the individuals will compare their rewards with others’ in relation to their costs. Equity can be defined as the balance between a person’s inputs and outcomes on the job. Some examples of inputs can be qualifications, promotions, interest on the job and how hard one works. Some outcomes can be pay, fringe benefits, and power status. The individual will mainly expect an equitable input-outcome ratio. Inequity happens when the individual apperceives an unbalanced ratio of their outcomes and other’s outcomes. This can occur in a direct exchange of the two parties, or there can be a third party involved. An individual’s point of view of equity or inequity can differ depending on the individual.

Frazer: Based on economics, Frazer’s theory about social exchange emphasizes the importance of power and status differentiations in social exchange. Frazer’s theory had a particular interest in the cross-cousin marriage.

Malinowski: With his Kula exchange, Malinowski drew a sharp differentiation between economic exchange and social exchange. Using his Kula exchange, Malinowski states that the motives of exchange are only social and psychological.

Mauss: Mauss’s theory tries to identify the role played by morality and religion in the social exchange. Mauss argues the exchange found in the society is influenced by the social behaviors, while morality and religion influence all aspects of life.

Bohannan: Bohannan focuses his theory on economic problems such as multicentrism, and modes of exchange. He contributed to the social exchange theory finding the role and function of markets in tribal subsistence economies, makes a distinction of economic redistribution and market exchange from social relationships.

Polanyi: He proposes three principles to create a new idea for socioeconomic change, transforming traditional economies, and political economy development. These principles are: reciprocity, redistribution and marketing.

Sahlins: He presents the idea that economy is a category of behavior instead of just a simple category of culture.

The introduction does not really explain what self-discrepancy theory is. Instead, the word "self-guides" is used as an attempt to explain but it actually makes it harder to understand to the general audience, because the article does not explain what "self-guides" means. Additionally, the article seems to jump from one point to another in a drastic way, without using any connections to relate each phrase. Also, the sources the author uses to base his article have more than 10 years since they were published. The author bases the article mostly on Higgins' theory (reference number 4) abusing this resource.