Social Exchange Theory - Comparison Levels and Modes of Exchange

Comparison Levels and Modes of Exchange

Social exchange includes "both a notion of a relationship, and some notion of a shared obligation in which both parties perceive responsibilities to each other" Evaluation rests on two types of comparisons: Comparison Level and Comparison Level for Alternative. The Comparison Level (CL) is a standard representing what people feel they should receive in the way of rewards and costs from a particular relationship. (Thiabaut and Kelly) An individual's comparison level can be considered the standards in which an outcome seems satisfies the individual. Comparison levels can be based on previous experiences. The Comparison Level for Alternative (CLalt) refers to “the lowest level of relational rewards a person is willing to accept given available rewards from alternative relationships or being alone” In other words, when using this evaluation tool an individual will consider other alternative payoffs or rewards outside of the current relationship or exchange.

According to Kelly and Thibaut, people engage in Behavioral Sequence, or a series of actions designed to achieve their goal. When people engage in these behavioral sequences they are dependent to some extent on their relational partner. In order for behavioral sequences to lead to social exchange, two conditions must be achieved: "It must be oriented towards ends that can only be achieved through interaction with other persons, and it must seek to adapt means to further the achievement of these ends". Power is an essential theme within Social Exchange Theory. Power can be exemplified within the theory during an unreciprocated exchanges. Power differentiation effects social structures by causing inequalities between members of different groups, such as a individual having superiority over another. Power within the theory is governed by two variables : the structure of power in exchange networks and strategic use. Two examples of power are fate control and behavior control. Fate control is the ability to affect a partner’s outcomes. Behavior control is the power to cause another’s behavior to change by changing one’s own behavior. Power is viewed differently within the theory, some theorists view power as distinct from exchanges, some view it as a kind of exchange and others believe power is a medium of exchange.

People develop patterns of exchange to cope with power differentials and to deal with the costs associated with exercising power. These patterns describe behavioral rules or norms that indicate how people trade resources in an attempt to maximize rewards and minimize costs. Three different matrices have been described by Thibaut and Kelly to illustrate the patterns people develop. These are given matrix, the effective matrix and the dispositional matrix.

• The given matrix represents the behavioral choices and outcomes that are determined by a combination of external factors (environment) and internal factors(the specific skills each interactant possesses).
• The effective matrix “which represents an expansion of alternative behaviors and/or outcomes which ultimately determines the behavioral choices in social exchange”
• The dispositional matrix represents the way two people believe that rewards ought to be exchanged between them.

There are three forms within these matrices: Reciprocity, Generalized Exchange, and Productive Exchange. In a direct exchange, reciprocation is confined to the two actors. One social actor provides value to another one and the other reciprocates. There are three different types of reciprocity:

1. Reciprocity as a transactional pattern of interdependent exchanges
2. Reciprocity as a folk belief
3. Reciprocity as a moral norm

A generalized exchange involves indirect reciprocity between three or more individuals. For example,one person gives to another and the recipient responds by giving to another person other than the first person. Productive exchange means that both actors have to contribute for either one of them to benefit. Both people incur benefits and costs simultaneously.

Another common form of exchange is negotiated exchange which focuses on the negotiation of rules in order for both parties to reach a beneficial agreement. Reciprocal exchanges and negotiated exchanges are often analyzed and compared to discover their essential differences. One major difference between the two exchanges is the level of risks associated with the exchange and the uncertainty these risks create (ref). Negotiated exchange can consist of binding and non-binding negotiations. When comparing the levels of risk within these exchanges, reciprocal exchange has the highest level of risk which in result produces the most uncertainty. An example of a risk that could occur during the reciprocal exchange is the factor that the second party could end up not returning the favor and completing the reciprocal exchange.Binding negotiated exchanges involve the least amount of risks which will result the individuals feeling low levels of uncertainty . Whereas non-binding negotiated exchanges and their level of risks and uncertainty fall in between the amount of risks associated with reciprocal and binding negotiated exchanges