Social Exchange Theory (AQA A Level Psychology): Revision Note

Syllabus Edition

First teaching 2025

First exams 2027

Exam code: 7182

Claire Neeson

Written by: Claire Neeson

Reviewed by: Cara Head

Updated on

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Understand this topic with deeper explanations and understanding checks.

The key features of Social Exchange Theory

  • Social Exchange Theory (SET) is what might be termed one of the ‘economic’ theories of romantic relationships, as it draws from the language of banking, investment and finance in the way that it conceptualises the functioning of relationships

  • SET was proposed by Thibaut & Kelley (1959) as a way of explaining how people view the costs and benefits of their current relationship

  • SET operates along the minimax principle

    • The idea that people in relationships will aim to minimise their losses and maximise their profits as would a business (profits equal rewards minus costs)

  • Rewards, costs and losses are entirely subjective and will depend on each individual

    • E.g., Betty enjoys feeling rewarded when her cooking is praised, but Bertie does not consider this to be important, so Betty’s delicious lasagne goes unrecognised and without praise

  • All relationships require each partner to be rewarded and to gain from the profit if the relationship is to survive, so each couple needs to negotiate the terms of this exchange either directly or via experience and learning

    • E.g., Bertie learns that he should always say something nice about Betty’s cooking

  • All relationships will require certain sacrifices, which offset the rewards (and in the long run may contribute to building a more rewarding relationship)

    • E.g., foregoing nights out at the pub for a quiet night in, living in a town instead of the countryside, putting up with each other’s family, taking a job with a lower salary, which means more personal time to spend as a couple

  • Costs can, however, destabilise a relationship if they lead to arguments, conflict, resentment, etc., so a fine balance is required, which will take time to achieve and is only achievable via hard work and rather a lot of compromise on both sides

Comparison levels

  • Comparison levels (CL) are used by each partner in a couple to determine the extent to which they are profiting from the relationship

  • CLs evolve based on a person’s experience of previous relationships, e.g. the amount and quality of rewards received in the past, or the costs, and whether these costs proved to be worth the rewards

  • The media is also responsible for informing ideas surrounding a person’s CLs

    • E.g., ‘Would Kim Kardashian put up with this?’

  • Cultural norms are also key factors in determining CLs: some cultures may assume that high costs are an inevitable part of being in a relationship, whereas other cultures may encourage a sense of entitlement in relationships

    • E.g., ‘I deserve so much more’

  • Self-esteem plays a key role in CLs too

    • A person with high self-esteem will demand better rewards than a person with low self-esteem, so the relationship is considered viable if the CL is better, i.e., more profit,  than past relationships

  • Comparison levels for alternatives (CLalt) are used to determine whether or not a new, different relationship would bring more rewards (and by extension, profit)  than the current relationship

    • E.g., ‘Bernie always praises my cooking; maybe I’d be happier with him than with Bertie’

  • People will stay in their current relationship if it appears to yield more profit than potential alternatives

    • E.g., ‘Bertie may not always praise my cooking, but he’s always taking me off on surprise holidays’

Examiner Tips and Tricks

It is vital that you can distinguish between all three of the ‘economic’ theories of relationships:

  • SET

  • Equity Theory

  • Rusbult’s Investment Model

The theories share some similarities, but they are all distinct, and examiners often report that students tend to confuse details of one theory with another or simply ‘lump them in together’. It would be a good idea to create a chart or table of each theory, highlighting the similarities and (more importantly) the differences between them.

The four stages of relationship development

  • SET proposes that relationships follow this pattern in terms of the rewards, costs and profits involved:

    • Sampling stage – the potential rewards and costs of all types of relationships, not just romantic relationships,  are explored via direct personal experience or vicariously, e.g., by observing others

    • Bargaining stage – this occurs early on in the relationship when each partner sets out what they expect, finds out what the potential costs/rewards are and begins negotiations with their partner

    • Commitment stage – costs and rewards begin to be smoothed out as the relationship is established and joint work is undertaken to maximise profits as a unit rather than as separate individuals

    • Institutionalisation stage – the partners are now settled down, and the norms of the relationship in terms of each partner's costs and rewards (the 'terms and conditions') are firmly established

Research which investigates Social Exchange Theory

  • Mitchell et al. (2012) – a range of interpersonal relationships can be analysed and understood using SET, but each type of relationship, e.g., romantic or social, requires a conceptual framework

    • Thus, SET cannot be generalised across all forms of relationship types

  • Floyd et al. (1994) – commitment develops when couples feel rewarded by their relationship and when they perceive that alternatives will not bring them any deeper satisfaction

  • Argyle (1987) – people do not tend to weigh up the pros and cons of the relationship they are in until they reach a point of dissatisfaction with that relationship, so the CLs and CLalts aspects of SET may not apply to most people

  • Nakonezny & Denton (2008) – SET is too limited in scope to fully address marital relationships in terms of its use as a tool in couples therapy

Evaluation of Social Exchange Theory

Strengths

  • Contrary to Nakonezny & Denton’s (2008) findings above, some research (Christensen et al. 2004) found that couples therapy based on increasing rewards and reducing costs via positive exchanges led to significant improvement in around two-thirds of distressed couples

  • SET has explanatory power, as the concept of comparison level for alternatives explains why people may stay in unsatisfying or harmful relationships when they perceive no better options

    • This increases the validity of the theory, as it accounts for behaviour that simpler reward-based explanations cannot

Limitations

  • One of the major difficulties in attempting to measure SET is that rewards, costs and profit are subjective variables that will differ from person to person, making it difficult to operationalise research

    • This makes it difficult to test the theory scientifically, limiting its status as a scientific explanation

  • Much research supporting SET uses artificial tasks in artificial conditions, e.g. two strangers working together on a game-playing scenario where rewards and costs are distributed - the 'relationship' depends entirely on the task

    • More realistic studies using real partners have been less supportive of SET, and snapshot studies cannot account for properties that emerge from a relationship over time, such as trust

      • This means the supporting research lacks ecological validity

  • SET ignores the role of equity (fairness) in relationships

    • Research suggests that what matters to partners is not simply maximising rewards but whether the distribution of rewards and costs is fair

      • This is a shortcoming addressed by equity theory not SET

Issues & Debates

  • SET is reductionist, as it reduces complex emotional relationships to simple cost-benefit calculations, like a business transaction

    • This ignores the emotional, irrational, and altruistic elements of relationships (e.g., staying with a partner out of love, loyalty, or duty even when costs are high)

    • Therefore, SET may lack validity as an explanation, as it oversimplifies human behaviour

Worked Example

Here is an example of an AO2 question you might be asked on this topic.

AO2: You need to apply your knowledge and understanding, usually referring to the ‘stem’ in order to do so (the stem is the example given before the question).

Leonard regularly makes sacrifices for his wife, Penny — he stays in to watch the kids while she goes to Zumba and joins her on trips to Vegas, even though he dislikes gambling. Penny rarely returns the favour; she refuses to attend Leonard’s Chess Club events or visit the Space Centre, saying it’s too boring.

Q. Briefly outline how the social exchange theory could be applied to both Penny and Leonard's relationship.

[4 marks]

Model answer:

Briefly outline SET:

According to Social Exchange Theory, people aim to maximise rewards and minimise costs in a relationship.

Apply SET to Leonard and Penny's relationship:

Leonard is experiencing high costs by making sacrifices for Penny (such as going to Vegas when he dislikes gambling) while receiving few rewards in return. Penny is gaining more from the relationship but putting in less effort (she rarely shows an interest in his hobbies), which creates an imbalance. If Leonard feels the costs outweigh the rewards, he may become dissatisfied with the relationship. [4 marks]

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Claire Neeson

Author: Claire Neeson

Expertise: Psychology Content Creator

Claire has been teaching for 34 years, in the UK and overseas. She has taught GCSE, A-level and IB Psychology which has been a lot of fun and extremely exhausting! Claire is now a freelance Psychology teacher and content creator, producing textbooks, revision notes and (hopefully) exciting and interactive teaching materials for use in the classroom and for exam prep. Her passion (apart from Psychology of course) is roller skating and when she is not working (or watching 'Coronation Street') she can be found busting some impressive moves on her local roller rink.

Cara Head

Reviewer: Cara Head

Expertise: Biology & Psychology Content Creator

Cara graduated from the University of Exeter in 2005 with a degree in Biological Sciences. She has fifteen years of experience teaching the Sciences at KS3 to KS5, and Psychology at A-Level. Cara has taught in a range of secondary schools across the South West of England before joining the team at SME. Cara is passionate about Biology and creating resources that bring the subject alive and deepen students' understanding