My View on Exchange and Conflict Theories -- Peterson B. Zhou
An Analysis on Exchange Theory and Conflict Theory

Superdirector.Com, December 1, 2001

Peterson B. Zhou Senior Fellow, Research Professor, Foreign Policy Studies, Aging, Lawsuit and Logic, Criminal Justice, Social Theory, Foreign Policy Studies, International Relations, International Trade, China, Taiwan, US Congressional Studies, U.S. Constitution, United States of America,Chinese Cultural Perceptions on National Defense and Security, Education, Diversity, World Culture, Human Rights, Civil Rights, Cross Cultural Communication, Web and Digital Communication, Translation(Click here to see his speech at National Academic Conference in 1991 )



Peterson B.Zhou

II. The Development of Exchange Theory and Its Compatibility with Conflict Theory

Exchange theory is one of the three closely related modern sociological theories. It is recognized as "a well-established approach to the study of social process and structure in the social sciences"(Ritzer,1990), which has been affected by other intellectual currents and science disciplines. However, its theoretic merit has not been fully addressed in social scientific research.

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In contrast to the development of contemporary conflict theory, the formation of modern exchange theory is not so smooth as any other theory. It takes many years for sociologists to realize the central strength of exchange theory as an independent theoretic approach for "its broad applicability across substantive areas and its ability to cross-cut levels of analysis"(Ritzer,1990). One of the reasons for the slow pace for this theory, according to Michael Hechter, "is the long tradition in sociology of debunking theories in which actors are viewed as 'rational' and as seeking to maximize their utilities'" (Hechter,1991). Because of the unfair bias against thinking in the terms of classical economics as displayed in Talcott Parson's early critique of utilitarianism and as demonstrated in Vilfredo Pareto's disillusionment with economics, the basic ideas of utilitarianism came to sociology in a round-about way via behaviorism. Therefore, we can see the different traditions in the exchange behaviorists as George C. Homans and the structural exchange theorist Peter M. Blau. However, the major tenets of the exchange theory still reflect the idea of utilitarianism.

It is only in the recent decades, modern exchange theory with either the behavior tradition in psychology or the utilitarian heritage in economics theory, become one of the most prominent theoretical perspectives in sociology in dealing with the related issues of inequality, power and conflict which are the most favorable topics for conflict theorists. Exchange theory "offers a dynamic conceptual scheme for understanding the relationship between individualist and society--a blueprint, as it were, for understanding the mechanism of integration between structure and process"(Cook et al.,1990).


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Among the most prominent exchange theorists, George C. Homans distinguishes himself in the behavioristic approach while Peter M. Blau has been noted for his structural exchange theory. The contribution made by Richard Emerson was also regarded as important because his work "marked the beginning of a new stage in the development of social exchange theory'(Mole and Cook, 1995:215).

While based fundamental propositions on psychological principles, Homans envisages social behavior as an exchange of activity, tangible or intangible, and more or less rewarding or costly, between at least two persons'(Homans, 1961). According to his point of view, actors are profit seekers who want to maximize their wealth while interacting with others. I agree to Ritzer's point of view that It is insufficient to use Homans' exchange theory to explain human being's mental status such as norms and values and the large-scale social structure, although he argues that "structure can be understood if we adequately understand elementary social behavior" (Ritzer, 1996).

Unlike Homans' exchange theory, Blau developed his exchange theory in another direction. His goal was "an understanding of social structure on the basis of an analysis of the processes that govern the relations between individual and groups. The basis question... is how social life becomes organized into increasingly complex structures of associations among men. Blau focused on the process of exchange, direct much of human behavior and underlies relationship among individuals as well as among groups. He was more concerned about the mechanism that lead to the change of social structure.

In his inductive reasoning, Blau envisaged a four-stage sequence leading from interpersonal exchange to social structure to social change. While trying to use a bundle of exchange concepts and implicit principle to bridge the micro/macro gap, Blau initiates his efforts in supplementing the exchange concepts to understand more complex social process of institutionalization. Therefore, he attaches great importance on the abstract concepts such as value, conscience, ideas, and impression, strains and social norms that bond society together. It is through Blau's works that account of the emergence of large-scale organizations and institutions governed by cultural norms and values.

According to Peter Blau, "rewards that are exchanged can be either intrinsic(love, affection, respect) or extrinsic(money, physical labor) the parties cannot always reward each other equally; when there is inequality in the exchange, a difference of power will emerge within an association"(in Ritzer,1996).

Peter Blau is concerned with what holds large-scale social units together and what tears them apart. Therefore, he takes pains in discussing groups, organization, collectivities, societies, norms and values. Peter Blau's exchange theory is usually regarded as macro theoretical perspective. Yet his primary concerns, in Ritzer's words, are only "with face to face relations"(Ritzer, 1996).

Armed with network theory in analyzing Power-dependence, Emerson tried to deal with social structure and social change by using "social relations and social networks as building blocks that spanned different levels of analysis"(Molm and Cook,1995). As Karen Cook points out that "it is the idea of exchange network structure that is central to micro to more macro levels of analysis through the study of exchange networks structures". "The use of the notion in exchange networks, allows for the development of theory that bridges the conceptual gap between isolated individuals or dyad and larger aggregates or collections of individuals(e.g. formal groups or associations, organizations, neighborhoods, political parties, etc.).

Emerson's network analysis on power is an important and useful synthesized approach in studying large-scale structure such as corporations and nation-states. His more structural efforts has greatly influenced the contemporary exchange theory into an integrative micro-macro approach and is quite similar to that of Collins paradigms. Although his network theory is relatively new and undeveloped, his idea is also helpful in understanding modern international relation. According to his theory, networks are transitive. "If there is a tie between A and B and B and C, there is likely to be a tie between A and C. The result is that there is more likely to be a network involving A, B and C"(Ritzer,1996).

The fundamental difference between exchange theory and conflict theory is that, "the basic unit of analysis to the exchange theorist is the social relationship (Ritzer,1996)" while the conflict theorists major interests are in the "social structure" illustrated by "interest groups", "class" and the "world system" and "states".

Although there are differences between exchange theorists and conflict theorists in their level of analysis, they have the approximately same ideas on the individuals. Exchange theorists regard individuals as the profit-seekers who want to maximize benefits while interacting with others and conflict theorists also see people as self-interested, thus clash are possible because sets of interests may be inherently antagonistic. They all believe that human actions are predicable and controllable because human being have goals for their actions.

Both exchange and conflict theorists are concerned about the results and consequences of the human behaviors while the former attach more to the individual level, the later address particularly to the collective outcome. That is the reason for exchange theory to be defined as "methodologically individualism" and for conflict theory to be labeled as "anti-individualism". In the light of this statement, there will be great benefits to both conflict and exchange theories if the rational elements of both perspectives are highlighted and advocated and the irrational elements can be carefully avoided while conducting research in the empirical world.

Although there is high possibility for the compatibility of conflict theory with exchange theory, the differences between these theories should be distinguished clearly before any comment on the theory per se. Exchange theory has been more influenced by other discipline and theories including rational choice theory. Therefore, it is considered more applicable in studying a wide range of topics. While Homans' exchange theory emphasized on micro level, and Peter Blau's structural exchange theory focused on macro level, Emerson's efforts in linking micro level to macro structure is similar to the paradigmatic integration advocated by rational choice theorists in their attempts (mainly in Coleman's) on studying micro/macro issues.

While addressing to the same individual behaviors, rational choice theorists are more concerned about the impacts on individuals by institutional constraints and the aggregation mechanism as well as information. Therefore, "the collective actions", "public goods" and "group solidarity" are very important concepts in rational choice theory which are similar to the concepts in conflict theory, though the later is not so concerned with the sociological models that "respect individuals and leave much room for individuals' own informed choices of actors (Friedman and Hechter,1988).

However, unlike exchange and rational choice theorists, some conflict theorists (such as Collins) did not see people as wholly rational. Collins think that people are venerable to emotional appeals in their efforts to find satisfaction.(Ritzer,1996).

If there is any weaknesses in these two theories, I share the criticisms on exchange theory that human behaviors are not always controllable and human being do not always calculate their cost. Exchange theory is not omnipotent in helping people understand social phenomena in spite of the fact that it has the major merits. In addition to this, there remains problems such as reductionism and tautological logics in exchange theory, especially in Homan's theory. Blau's concepts are criticized for being too vague as some conflicts theorists concepts and models have the same fate.

In conflict theory, Wallerstein's concepts are criticized by Ritzer and Collins as too vague while Collins' own concepts and models are criticized by Turner as vague and metaphorical too. Turner argues that Collins "rarely defines concepts precisely, and he shifts his vocabulary in ways that often make it difficult to get a clear grasp of even such central concepts as resources, power, coercion, property, wealth, negotiations, encounters, rituals and structures"(Turner, 1991).

I do not completely disagree with Turner's comment on this point, because Collins' shortcoming is not impairable and irremediable. However, I share Turners' ideas that Collins writes so well and so engagingly that the problems of slipper and vagueness become unavoidable. Moreover, when Collins builds his theory, he assumes that readers(sociologists) are familiar with the major sociological concepts, and it is impossible and unnecessary for a single writer to define more than 400 propositions in a single book (Conflict Sociology)as clear as possible.

Turner is quite right when he commented another shortcoming ofined simply through a particular perspective. In studying international relation, different perspectives can be used do explain a certain social phenomena such as trade behaviors. Here we come to the third part of this paper. (1997)(to be continued)

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