Explain the three core components of Social Exchange Theory. Describe how they work together to predict satisfaction and stability.

What will be an ideal response?

The three core components of Social Exchange Theory (SET) are outcome, comparison level, and comparison level of alternatives. Outcome refers to the ratio of rewards to costs. According to SET, we want to maximize our rewards and minimize costs. Comparison level refers to what rewards one expects to receive from a specific relationship. When the rewards–costs (O) is greater than the expectations for the relationship (CL), the more satisfying the relationship. Finally, comparison level of alternatives (CLalt) is the perception of other options to this relationship. In other words, if I leave this relationship, what are my alternatives? The fewer my alternatives, the more likely I am to stay in the relationship, regardless of whether I am satisfied.
Learning Objective: Compare and contrast the major theoretical approaches to interpersonal communication.