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A general theory of interpersonal exchange

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Abstract

A general theory of interpersonal exchange is developed from a public goods, public choice point of view and within an analytical context that assesses both the benefits and the costs of social interaction. Social transaction benefits and costs are specified as a composite function of interpersonal bindingness, which itself depends upon five parameters. The model provides for the determination of an optimal personal degree of bindingness in a two-person relationship. Extensions encompass the more interesting reaction case, where two individuals each select their own optimal personal bindingness levels. Applications and conclusions complete the paper.

qu]When love beckons to you, follow him, Though his ways are hard and steep ... For even as love crowns you so shall he crucify you. Even as he is for your growth so is he for your pruning.

Kahlil Gibran The Prophet

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Authors and Affiliations

  1. University of Hawaii-Hilo, Hilo, USA

    Jon Cauley

  2. University of Wyoming, Laramie, USA

    Todd Sandler

Authors
  1. Jon Cauley
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  2. Todd Sandler
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Additional information

The authors wish to thank Kathleen Gonzales, Phil Graves, L.F. Pisciottoli, and Kate Ranta for helpful comments. Special thanks are extended to Teresa Tan whose contributions significantly improved the content and presentation of this paper. Full responsibility for the paper rests with the authors. Todd Sandler's research has been supported by a NATO Postdoctoral Fellowship in Science. Additional research assistance was provided by the Institute of Social and Economic Research at the University of York, U.K. and by the Bugas Fund of the University of Wyoming. Jon Cauley's research was partially supported by a grant from the University of Hawaii. An earlier version of this paper was presented at the 1978 meetings of the Western Economic Association in Kailua-Kona, Hawaii.

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Cauley, J., Sandler, T. A general theory of interpersonal exchange. Public Choice 35, 587–606 (1980). https://doi.org/10.1007/BF00140088

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