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Q) What is Social exchange theory? How does it explain the social dynamics behind relationship building?
Party 1
Social exchange theory states that when two individuals come into an interaction, they evaluate each other's possessions to ensure whether they can be beneficial to each other or not.
Part 2
Economically, a relationship works better if the party involved have long lasting assets to offer each other. It is a literal cost benefit analysis whole being in any kind of relationship.
If the cost of the relationship exceeds the benefit of the relationship, then the longevity of the relationship comes at this.
So, the social dynamics involved in a successful relationship is constantly cultivating new assets to offer each other.
For a long term business, new features must be added to the product to attract customers. Business turns down when their is nothing new to offer to the customers.
The theory equally holds good for any relation or collaboration.
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