Sociological Theory

Notes on Exchange Theory
Sociological Theory

Social Exchange

Department of Sociology and Anthropology
UMD

EXCHANGE THEORY

I. TWO VERSIONS OF EXCHANGE THEORY

A. INDIVIDUALISTIC HOMANS BLAU

B. COLLECTIVISTIC MAUSS

LEVI-STRAUSS

II. COLLECTIVISTIC EXCHANGE

A. MARCEL MAUSS (1966)
THE GIFT: FORMS AND FUNCTIONS OF EXCHANGE IN ARCHAIC SOCIETIES
B. THREE TYPES OF EXCHANGE

1. TOTAL PRESTATIONS

2. GIFT EXCHANGE

3. ECONOMIC EXCHANGE

TOTAL PRESTATIONS

1. CARRIED OUT BY GROUP; CLANS; FAMILIES; ETC

2. NOT JUST GOODS AND WEALTH, NOT JUST COMMODITIES BEING EXCHANGED

3. ECONOMICS IS SELF-INTEREST; CEREMONIAL IS DISINTERESTED GENEROSITY - THE GIFT

4. MUST MAKE A RETURN GIFT; IT IS SOCIAL OBLIGATION TO GIVE AND RECEIVE

5. ESTABLISHES A BOND (CONNECTION); HIGHLY STEEPED IN MORALITY; GENERATES A MORAL BOND (WILL COME BACK TO THIS WITH DURKHEIM)

6. RECIPIENTS IN "DEBT' UNTIL RETURN - IF NO RETURN THE PERSON LOSES STATUS; REPUTATION IS HURT;

IT IS A WAY TO GET ONE UP ON YOUR COMPETITOR - GREATER RESPECT

GIFT EXCHANGE IS DIFFERENT IN THAT BETWEEN INDIVIDUALS OBLIGATION IS TO REPAY; NOT GIVE AND RECEIVE

EXCHANGE IS NOT RATIONAL CHOICE BUT, RATHER BUILT INTO THE STRUCTURE OF SOCIETY

THE GIFT IS POWER -- TIES ALL OF SOCIETY TOGETHER

IT IS AT ONE AND THE SAME TIME; ECONOMIC, POLITICAL, KINSHIP-ORIENTED, RELIGIOUS, PRACTICAL, PERSONAL, AND IMPORTANTLY - SOCIAL

ECONOMIC EXCHANGE IS BETWEEN INDIVIDUALS AND GOVERN BY RATIONAL CHOICE

CLAUDE LEVI-STRAUSS
"THE ELEMENTARY STRUCTURE OF KINSHIP"


TWO ASSUMPTIONS

1. SUB-HUMAN ANIMALS INCAPABLE OF SOCIAL EXCHANGE - ONLY HUMANS ARE, THEREFOR CAN'T LOOK AT ANIMAL BEHAVIOR

2. INDIVIDUAL PROCESS MAY BE SELF INTEREST BUT CAN'T SUSTAIN SOCIAL EXCHANGE PROCESS

THE BASIS OF EXCHANGE IS NOT ECONOMIC (ADAM SMITH) OR PSYCHOLOGY (EQUATED WITH ANIMAL BEHAVIOR)

ITEMS FOR EXCHANGE ARE SOCIALLY DEFINED THEREFOR, SYMBOLIC VALUE IS IMPORTANT NOT ECONOMIC VALUE

HUMANS GIVE MEANING TO GIVE AND TAKE IN PROCESS OF RECIPROCITY

NORMS AND VALUES ARE INSTITUTIONALLY DEFINED NOT BROUGHT IN BY INDIVIDUALS (THINK OF CLASSROOM EXCHANGE)

IF THINGS ARE IN ABUNDANCE THERE IS NO NEED FOR SOCIETY TO INTERVENE

IF SCARCITY OF ITEMS, SOCIETY MAY REGULATE

SOCIETY CAN CREATE SCARCITY BY CREATING RULES; E.G. INCEST AND DEFINING ILLEGIBLE MARRIAGE PARTNERS

SOCIAL COST OF EXCHANGE IS BLAMED ON SOCIETAL NORMS AND CUSTOMS; NOT BLAMED ON INDIVIDUAL IN EXCHANGE

MUTUAL RECIPROCITY A B UNIVOCAL RECIPROCITY A~B~C~D

NET EXCHANGE A-*BCD OR BCD~A (WHERE BCD REPRESENTS GROUP)

RESTRICTED EXCHANGE IS MORE OFTEN FOUND IN GROUPS CHARACTERIZED BY MECHANICAL SOLIDARITY

GENERALIZED EXCHANGE IS MORE OFTEN FOUND IN GROUPS CHARACTERIZED BY ORGANIC SOLIDARITY

INDIVIDUALISTIC EXCHANGE THEORY

THINK OF ADAM SMITH DIVISION OF LABOR LEADS TO EXCHANGES WHICH LEADS TO BETTER SOCIETY

HUMAN NATURE IS EXCHANGE BASED
(MAY BE SOCIALLY INDUCED BUT OF NO MATTER)

COMBINED DIVISION OF LABOR AND HUMAN NATURE LEADS TO THE BEST OF ALL POSSIBLE WORLDS

HOMANS SAYS EXCHANGE IS BASED ON ECONOMIC AND PSYCHOLOGICAL FACTORS;

DISAGREES WITH STRAUSS;

EXCHANGE IS DYADIC IN ITS ELEMENTARY FORMS

GEORGE C. HOMANS
"SOCIAL BEHAVIOR: ITS ELEMENTARY FORMS"


REWARDS AND PUNISHMENTS MUST BE IMMEDIATE

HOMANS CONCENTRATES ON SMALL GROUPS, STRIP AWAY TRAPPINGS OF LIFE TO IT'S ELEMENTARY FORM

FIVE PROPOSITIONS:

1. SUCCESS PROPOSITION:
FOR ALL ACTIONS TAKEN BY PERSONS, THE MORE OFTEN A PARTICULAR ACTION OF A PERSON IS REWARDED, THE MORE LIKELY THE PERSON IS TO PERFORM THAT ACTION.


2. STIMULUS PROPOSITION
IF IN THE PAST THE OCCURRENCE OF A PARTICULAR STIMULUS, OR SET OF STIMULI, HAS BEEN THE OCCASION OF WHICH A PERSONS ACTION HAS BEEN REWARDED, THEN THE MORE SIMILAR THE PRESENT STIMULI ARE TO THE PAST ONES, THE MORE LIKELY THE PERSON IS TO PERFORM THE ACTION, OR SOME SIMILAR ACTION, NOW.


3. VALUE PROPOSITION:
THE MORE VALUABLE TO A PERSON THE RESULT OF HIS/HER ACTION, THE MORE LIKELY S/HE IS TO PERFORM THE ACTION.


4. DEPRIVATION-SATIATION PROPOSITION
THE MORE OFTEN IN THE RECENT PAST A PERSON HAS RECEIVED A PARTICULAR REWARD, THE LESS VALUABLE ANY FURTHER UNIT OF THE REWARD BECOMES FOR HER/HIM.

5. AGGRESSION-APPROVAL PROPOSITION
WHEN A PERSON'S ACTION DOES NOT RECEIVE THE REWARD S/HE EXPECTED, OR RECEIVES PUNISHMENT S/HE DID NOT EXPECT, S/HE WILL BE ANGRY; S/HE BECOMES MORE LIKELY TO PERFORM AGGRESSIVE BEHAVIOR, AND THE RESULT'S OF SUCH BEHAVIOR BECOME MORE VALUABLE TO HIM/HER. WHEN A PERSON'S ACTION RECEIVES REWARD S/HE EXPECTED, OR DOES NOT RECEIVE PUNISHMENT S/HE EXPECTED, S/HE WILL BE PLEASED; S/HE BECOMES MORE LIKELY TO PERFORM APPROVING BEHAVIOR, AND THE RESULTS OF SUCH BEHAVIOR BECOME MORE VALUABLE TO HIM/HER.


PETER BLAU

INDIVIDUAL EXCHANGE LEADS TO SOCIAL STRUCTURE

"EXCHANGE IS HERE CONCEIVED AS A SOCIAL PROCESS OF CENTRAL SIGNIFICANCE IN SOCIAL LIFE, WHICH IS DERIVED FROM SIMPLER PROCESSES AND FROM WHICH MORE COMPLEX PROCESSES ARE IN TURN DERIVED."

TO BE EXCHANGE: BEHAVIOR MUST BE ORIENTED TOWARDS GOALS

REACHED IN INTERACTION WITH OTHERS

MEANS MUST BE SOUGHT TO REACH ENDS; IMPLYING RATIONALITY
ASSOCIATIONS REST ON EXCHANGE

PEOPLE TRY TO MAXIMIZE REWARDS AND MINIMIZE COSTS

EIGHT PROPOSITIONS:

1. THE DESIRE OF SOCIAL REWARDS LEADS PEOPLE TO ENTER INTO EXCHANGE RELATIONSHIPS WITH ONE ANOTHER.

2. RECIPROCAL SOCIAL EXCHANGES CREATE TRUST AND SOCIAL BONDS BETWEEN PEOPLE.

3. UNILATERAL SERVICES CREATE POWER AND STATUS DIFFERENCES.

4. POWER DIFFERENCES MAKE ORGANIZATION POSSIBLE.

5. THE FAIR EXERCISE OF POWER EVOKES SOCIAL APPROVAL AND THE UNFAIR EXERCISE OF POWER EVOKES SOCIAL DISAPPROVAL.

6. IF SUBORDINATES COLLECTIVELY AGREE THAT THEIR SUPERIOR EXERCISES POWER GENEROUSLY, THEY WILL LEGITIMATE HIS/HER POWER.

7. LEGITIMATE POWER IS REQUIRED FOR STABLE ORGANIZATION.

8. IF SUBORDINATES COLLECTIVELY EXPERIENCE UNFAIR EXERCISE OF POWER, AN OPPOSITION MOVEMENT WILL DEVELOP

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Copyright: © 2001, John Hamlin
Last Modified: Friday, 15-Feb-2008 22:27:28 CST
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