Social exchange is a theory in psychology and sociology that suggests human relationships are formed based on the perceived benefits and costs involved. People evaluate their interactions by weighing the rewards they receive, such as support or companionship, against the costs, like time or effort. This evaluation influences whether they continue or end a relationship. The concept is often applied in various contexts, including friendships, romantic relationships, and workplace dynamics. It emphasizes that individuals seek to maximize their benefits while minimizing their costs, leading to a balance that can affect the stability and satisfaction of their relationships.