The exchange perspective emerged, in part, out of behaviorism by emphasizing observed behavior through a system of punishment and rewards. Other contributing factors include the rational choice theory, and micro-level studies on group process, power, and dependence. Essentially, the exchange theory curtails the social world as an endless series of exchanges. These exchanges can involve monetary means, and the exchange of other objects, or the exchange of communication or ideas. Dimensions of power, dependences, and inequality with exchange figure into the analysis. .
Peter Blau's primary objective as an exchange theorist was to offer an explanation regarding individual and group processes. detailing how they create an increasingly complex social order. In regard to this, Blau expressed the necessity to essential to focus primarily on social structure. Regarding this view, Blau felt to relationships were maintained on a reward type basis. When the rewards failed to continue, essentially so did the relationship. For example: if person A wants something from person B, but can not offer anything of equal value in return, Person A will become subordinate to person B. This gives person B what is known as "generalized credit" in the relationship, which person B can utilize at his or her discretion.
Group affiliations emerge when someone is attracted to a group, and so indicates to the group members that they will find it rewarding to allow this person into the group. Leaders of the group materialize from complex exchanges that indicate this person can give group members the most rewards. In these ways, groups start to become differentiated allowing certain members to have more power than others. However, the subordination of the followers may be given reluctantly. In Blau's observations subordination can sometimes be a painful and undesired experience. And so the process of integration must transpire.