CHAPTER 12

Exchange, Network, and

Rational
Choice Theories
EXCHANGE THEORY

We begin, following Molm and Cook (1995; Cook and Rice, 2001, 2005;
Lovaglia, 2007), with an overview of the history of the development of
exchange theory, beginning with its roots in behaviorism
Behaviorism
The behavioral sociologist is concerned with the relationship between
the effects of an actor’s behavior on the environment and its impact on
the actor’s later behavior.

This relationship is basic to operant conditioning, or the learning process

by which “behavior is modified by its consequences”

The environment in which the behavior exists, whether social or physical,

is affected by the behavior and in turn “acts” back in various ways.
If the reaction has been rewarding to the actor, the same behavior is
likely to be emitted in the future in similar situations.

If the reaction has been painful or punishing, the behavior is less likely
to occur in the future.

The behavioral sociologist is interested in the relationship between the

history of environmental reactions or consequences and the nature of
present behavior.
Of great interest to behaviorists are rewards (or reinforcers) and costs
(or punishments). Rewards are defined by their ability to strengthen
(that is, reinforce) behavior, while costs reduce the likelihood of
behavior.
Rational Choice Theory

The basic principles of rational choice theory are derived from

neoclassical economics (as well as utilitarianism and game theory; Levi
et al., 1990; Lindenberg, 2001; Simpson, 2007).

Actors are seen as being purposive, or as having intentionality. That is,

actors have ends or goals toward which their actions are aimed. Actors
also are seen as having preferences (or values, utilities).
Although rational choice theory starts with actors’ purposes or
intentions, it must take into consideration at least two major
constraints on action:

First : scarcity of resources

Second : source of constraints on individual action is social institutions
• provide both positive and negative sanctions that serve to encourage
certain actions and discourage others.
The Exchange Theory of George Homans
The heart of George Homans’s exchange theory lies in a set of
fundamental propositions

• First, “they are usually

stated and empirically tested by persons who call themselves
psychologists”
• Second, and more important, they are psychological because of the
level at which they deal with the individual in society:
Social Behavior: Its Elementary Forms
(1961, 1974)
Homans acknowledged that his exchange theory is derived from both
behavioral psychology and elementary economics (rational choice
theory)
• In fact, Homans (1984) regrets that his theory was labeled “exchange
theory” because he sees it as a behavioral psychology applied to
specific situations.
The 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.
(Homans, 1974:16)
The Stimulus Proposition