Social Exchange Theory Application


by Chrissy Coughlin


Social exchange theory is based upon rewards and costs of a relationship. We base our decision to develop or maintain a relationship from the amount of profits that we could recieve. Social exchange uses the equation: Rewards-Costs=Profits to figure out whether a relationship is worth the time. Usually, the typical person decides to persue relationships where the rewards are greater than the cost. They understand that in order to get the rewards that there will be costs that they will have to deal with.
  • In the movie Jerry Maguire the social exchange theory can easily be applied to the relationship between Jerry Maguire and the football player Rod Tidwell. When Rod decided to sign with Jerry, he thought that the benefits from having an agent that was on a personal level would end up outweighing signing with a major agent firm. He figured that he would end up being a little fish in a big pond. Time passed and Rod had not recieved any offers for the contracts that he had been hoping for. He started to reevaluate his relationship with Jerry. Rod started to believe that he made the wrong decision because the costs were outweighing the rewards. This was a typical reaction that is based on the comparision level alternative. For further information go to a description on Anne's page. Rod was at the comparison level of alternatives because he accepted the worst of his relationship with Jerry as his agent and decided to maintain it. In the end, Jerry worked hard to end Rod's costs that he was encountering and caused the rewards to increase by helping him establish a huge contract with the Arizona football team.
  • This theory can also be seen in the relationship between Jerry and Dorothy. After their marriage, Jerry becomes too involved improving his career. Jerry started to pay less attention to his relationship and it began to suffer to the point where they had to seperate. As time went on, Jerry figured out that the profits from his marriage out weighed the profits from his success. Jerry went back to Dorothy because she ''completed him".

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