Exchange Theory is a social and economic concept that suggests human relationships are formed based on the exchange of resources, such as time, money, or emotional support. According to this theory, individuals seek to maximize their benefits while minimizing their costs in interactions. This perspective can be applied to various contexts, including relationships, business, and social interactions.
The theory posits that people evaluate their relationships by comparing the rewards they receive against the costs they incur. If the perceived rewards outweigh the costs, individuals are likely to maintain the relationship. Conversely, if the costs exceed the rewards, they may choose to end the relationship or seek alternatives.