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Theory of social exchange

a socio-psychological model that explains people’s behavior in social, romantic and family relationships through the prism of benefits and costs. Developed primarily by sociologists and social psychologists such as George Homans and Peter Blaeu in the 1960s, this theory emphasizes that relationships survive or break down depending on people’s appreciation of benefits and rewards versus the effort and costs invested in relationships. This analytic model explains that the preservation or destruction of human relationships depends on people’s assessment of the benefits (rewards) compared to the costs (demands or efforts expended) in the relationship. People seek to maximize benefits at the lowest possible cost and maintain relationships that achieve a positive balance between benefits and costs, while they fail in relationships where they perceive unfairness or inequality between rewards and costs.

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