Social Exchange Theory: Definition and Examples (In 3 Minutes)

Social exchange theory explains human relationships as a series of interactions based on rewards and costs. The idea is that people weigh the benefits they receive from a relationship against the effort or sacrifices they put in. If the rewards outweigh the costs, they are more likely to stay in the relationship; if the costs are higher, they may choose to leave. This process is similar to how people make decisions in economic exchanges, except it applies to social interactions.