Rational Choice and Exchange Theory

Question 1

Exchange Theories: Intro

Answer 1

Human social action is built on material and non-material social exchange
Roots in behaviorism (psychology)–social environment rewards
Roots in Rational Choice Theory (RCT)–maximize pleasure, minimize pain
- maximize utility function (pleasure/reward)

Question 2

George Homans: Intro

Answer 2

Harvard Soc prof–died 1989
Psychological “reductionism”–no emergentism in emergentism/individualism debate between sociology and psychology
Elementary Forms of Social Life–used propositions of behavioral psychology to explain micro sociology

Question 3

George Homans: Social Behavior: Its Elementary Forms: Success Proposition

Answer 3

“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”

Question 4

George Homans: Social Behavior: It’s Elementary Forms: Stimulus Proposition

Answer 4

“If in the past the occurrence of a particular stimulus, or set of stimuli, has been the occasion on which a person’s action has been rewarded, then the more similar the present stimuli are to the past ones, the more likely the person is to perform the action, or some similar action.”

Question 5

George Homans: Social Behavior: It’s Elementary Forms: Value Proposition

Answer 5

“The more valuable to a person is the result of his action, the more likely he is to perform the action”

Question 6

George Homans: Social Behavior: It’s Elementary Forms: Deprivation-Satiation Proposition

Answer 6

“The more often in the recent past a person has received a particular reward, the less valuable any further unit of that reward becomes for him”

Question 7

George Homans: Social Behavior: It’s Elementary Forms: Aggression-Approval Propositions

Answer 7

“Proposition A: When a person’s action does not receive the reward he expected, or receives punishment he did not expect, he will be angry…”

“Proposition B: When a person’s action receives the reward he expected, especially a greater reward than he expected, or does not receive punishment he expected, he will be pleased…”

Question 8

George Homans: Social Behavior: It’s Elementary Forms: Rationality Proposition

Answer 8

“In choosing between alternative actions, a person will choose that which, as perceived by him at the time, the value, V, of the result, multiplied by the probability, p, of getting the result, is the greater.

Question 9

George Homans: Criticisms

Answer 9

We don’t use these theories specifically–we feel our way through it
No macro theory–never gets beyond these propositions

Question 10

Peter Blau: Intro

Answer 10

A theory of society must account for social structure

- how do emergent properties arise from basic exchange

Question 11

Peter Blau: 4 Stage Theory

Answer 11

1. Personal exchange between people gives rise to…
2. Differentiation of status and power, leading to…
3. Legitimization and organization, which allows for…
4. Opposition and change.

Question 12

Peter Blau: Micro Interaction

Answer 12

Begins with psychological attraction and desires for rewards
If both parties are mutually attracted a reciprocal association is established
- The rewards furnished sustain the association
- These rewards can be intrinsic (ex emotions) or extrinsic
Differentiation–one party desires a reward that they cannot furnish in return
- Subordination occurs, giving the one party a type of “generalized credit” from the other

Question 13

Peter Blau: The Group (microstructures)

Answer 13

Individuals desire to be accepted by groups–needs:

• impress group by demonstrating potential reward
• Then display deference to the authority structure of the group (subordinate oneself)

Question 14

Peter Blau: Social Norms

Answer 14

Norms integrate groups by governing the relationships of power
Most important in group context
- Agreement that emerges among the subordinates about the superior is critical
- Collective approval legitimates power
— This provides the basis of organization
- Collective disapproval engenders opposition
— This provides the basis of opposition ideologies and collective movements

Question 15

Peter Blau: Macrostructures (one of the first bridging theories)

Answer 15

Composed of substructures (micro or macro)
Value consensus, not norms, integrates substructures (ex patriotism, consumerism)
Forces within/between substructures influence emergent properties of the macrostructure
Formalized procedures turn many macrostructures into institutions (education, family, religion, state, etc)

Question 16

Rational Choice Theory

Answer 16

Derived from economics (micro & macro)
- social action rests on humans maximizing their utility
- humans have access to various forms of capital (economic, human, cultural, social) that they use to secure scarce resources
Popularized by James Coleman
- influenced by Gary Becker (economic approach to human behavior–Freakonomics)
- introduced the concept of social capital

Question 17

Rational Choice Theory: Social Capital: Intro

Answer 17

Resource used to maximize utility
Only exists in social relations
Typically unintended byproduct of social life

Question 18

Rational Choice Theory: Social Capital: 3 Forms (Coleman)

Answer 18

1) Trust–measure of health of society, keeps actions cheap (ex neighbor childcare)
2) Information Channels–diversity/size of social network provides information you don’t have from close networks
3) Norms & Effective Sanctions–block destructive behavior–ex Catholic schools benefit students more cos tight-knit communities have more control

Question 19

Recent Advances in Exchange Theory

Answer 19

Network Exchange theory
Inclusion of cognitive science (process info) and symbolic interactionist (self-conception) perspectives
Disconnect from rational choice theory and develop different “forms” of exchange
- ex altruism, competition, reciprocity

Question 20

Criticisms of Rational Choice

Answer 20

Psychologically unrealistic, therefore dangerous to build a macro social theory upon
Overly ambitious–can’t explain EVERYTHING
Explains very little micro-interaction–people have different hierarchies of desires
Does not take culture seriously