Social Exchange Theory
Social exchange theory was founded by George Homans. Man as a rational being lies at the foundation of such a theory. The individual as a rational being is seen as rationally calculating loss or gains, pleasures and pains in order to maximize profits. Thereby the exchange theory implies that an individual being is universally motivated by self-interest. Accordingly, as per the provisions of the social environment individual beings maximize their profits in social interaction. By exchanging gains and loss, or rewards and punishment, human beings interact with each other.
It is being held popularly that social exchange theory was largely guided by the early twentieth-century rational choice theory as ...