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    Social Exchange Theory and Trust

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    How well does Social Exchange Theory (X theory/Y theory) explain trust? What other perspectives could there be to understand trust?

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    Social Exchange Theory

    Social exchange theory is based on the fundamental principle that the reason of human interaction is the exchange of social and material resources. Social exchange theory explains that negotiated exchange between parties results in social behavior or social change and constancy. The purpose behind this exchange process is to form the social relationship by maximizing the benefits and minimizing the costs. According to the social exchange theory, people use a subjective cost-benefit analysis to weigh the probable ...

    Solution Summary

    This solution provides a description of social exchange theory and how that may explain trust.