The Three Different Forms of Social Exchange – Generalized, Reciprocal, and Negotiated

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Social exchange theory is a psychological and sociological perspective that describes
social behavior and the costs and benefits of relationships between two people or
groups/factions. These relationships can be ephemeral/temporary, professional, family, or
romantic. The theory posits that if the costs of a relationship supersede rewards, the relationship
may be abandoned or terminated. Therefore, social exchange is “a series of transactions between
two individuals, where tangible and intangible goods between two interdependent individuals are
traded” (Rockman et al. 140). The three types of social exchanges include generalized,
reciprocal, and negotiated.
“Generalized exchange” is the exchange of actions/resources between two or more
individuals or parties without expecting immediate or direct returns. In generalized exchange,
one is “willing to provide to someone else without knowing if or when you might be paid back”
(Rockman et al. 141). It can be viewed as costly altruistic acts whose intention is to benefit
others or make them happy at one’s own expense. For example, heeding to a friend’s request to
distribute relief food for flood victims is considered a generalized exchange because it involves
charity work; there is no direct or immediate benefit (financial) one expects from the charitable
work.
On the other hand, “reciprocal exchange” occurs when the exchange occurs with an
expectation of a benefit or return on investment (ROI) of equal value. Typically, “reciprocal

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exchange” means people or groups render services or supply resources/goods with the
expectation that they will reap the rewards similar in weight to their efforts. A classic example is
the saying, “scratch my back, and I will scratch yours.” For instance, this saying can directly be
translated to mean that I sign a loan for you today as a guarantor and expect you to guarantee me
in the future when I want a loan. Reciprocal exchange can be intricate to achieve because it
needs high commitment and trust between partners.
Finally, “negotiated exchange” occurs when the exchange of actions/resources is done
with the expectation of a bargained or brokered return (Rockman et al. 141). Groups or
individuals only agree to help, render services, or supply goods when they expect to receive
something in return; the returns are agreed upon by both parties through a contract, deal, or
negotiation. An employment agreement/contract is an example of a negotiated exchange
whereby an employee agrees to render services to an employer for a specific salary the two agree
upon.

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Works Cited

Rockman, Kelvin, et al. Negotiation: Moving from Conflict to Agreement (1 st ed.). SAGE
Publications, Inc., 2021.