The Social Exchange Theory surfaced after sociologists, began examining human behavior by systematically utilizing series of reprimands and rewards. The rational choice theory, group processes, power, and dependence are other contributing factors, especially for micro-level studies. One particular sociologist, Peter Blau, has for all intents and purposes; suggested the Exchange Theory encompasses the social world as an endless series of exchanges (1964). These exchanges may involve monetary means, the exchange of other objects, the exchange of communication, or ideas. Other aspects, including the scope of power, dependences, and inequality that correspond with exchange are figured into the analysis. Theorist Peter Blau explained these social exchanges in terms of separation of status, and the social changes that arose from the conflicts caused by these differences (1975).
Through his research of the Exchange Theory, Peter Blau introduced norms to the model, this bringing the theory to a macro level. His reason for doing this was to explain how individual and group processes can create an "increasingly complex social order" (Blau 1964). Furthermore, Blau determined there is a distinction between large and small groups in regard to exchanges. In small groups, members have direct exchanges, or interactions, that unite the individuals. In larger groups, mechanisms are needed to intercede in the relationship. For Blau, this is where norms and values come into play. Norms are considered vital for the process of indirect exchange, as characterized by large groups. In other words, individuals interact collectively with a large group, since direct interaction is not always feasible. By adhering to the group norms, an individual contributes to the stability of the group, and receives the reward of belongingness and/or approval for their conformity (Blau 1975). .
For these group relationships to transpire, there must be an attraction to a group by an individual.
