Bargaining policies and social exchange: Review of a neglected concept

Social exchange is distinguished from the “economic” through restriction of inquiry to the universe of nonpecuniary counters, chief among which are inclusion, position, and exclusion—in and from enduring groups. Explicitly or implicitly, sociological exchange theorists accept Edgeworth's neoclassical model as settled social scientific knowledge that can be explained and further elaborated in terms of institutionalized norms. Blau's elaborated neoclassical model of bilateral exchange is compared to Shackle's “action” model. Shackle allows actors a choice of bargaining policies, whereas Blau, following Edgeworth, arbitrarily imposes a single policy to objectify indifference curves and enable “outside observers” to test hypotheses relating the terms of exchange to the differentiation of power in enduring groups. Were the imposition unwarranted, such “empirical” claims would vanish. The neoclassical restriction also prevents actors from conceiving “investment opportunities” in bilateral exchange, thus defeating the sociological objective of deriving power from social exchange. Three figures illustrating Edgeworthian indifference curves are provided along with an appendix to clarify the distinction between objective and subjective theory.