Social exchange theory is a
social psychological and
sociological perspective that explains social change and stability as a process of negotiated exchanges between parties. Social exchange theory posits that human
relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives. The theory has roots in
economics,
psychology and
sociology. Social exchange theory features many of the main assumptions found in
rational choice theory and
structuralism. It is also used quite frequently in the business world to imply a two-sided, mutually contingent and rewarding process involving transactions or simply exchange.