Profit-Loss Calculation in Social Interaction: An Integrated Analysis of Psychology and Economics

By SAYEEDIN

 Profit-Loss Calculation in Social Interaction: An Integrated Analysis of Psychology and Economics


 Introduction

Human social relationships are not always based on emotions; they often depend on profit-loss calculations.In real life, it is seen that some people behave very well when needed, but when the work is done, their behavior changes and communication or respect decreases.


The Social Exchange Theory of social psychology plays an important role in explaining this behavior. According to this theory, people often see social relationships as an exchange process where the relationship is maintained when the benefit is high and the relationship weakens when the benefit decreases.


On the other hand, in economics,

According to the concept of Utility, an object or service is valuable only when it meets human needs.When the need is gone, its value decreases.


This study has attempted to analyze human social behavior by combining the concepts of psychology and economics.


Research Question

The main question of this study was:


Can human social behavior be explained by combining psychology and economics?


 Specifically:

Do people evaluate social relationships in terms of benefits and costs?


Does the importance of those relationships decrease when the need is over?


Theoretical Framework

The theoretical foundation of this study is based on three concepts.


Social Exchange Theory

Human relationships are often evaluated from the perspective of cost and benefit.


Instrumental Behavior

According to Instrumental Behavior, people sometimes behave to achieve specific goals. That is, the behavior is purposeful.


 Impression Management

According to Impression Management, people strive to create a positive image in front of others so that they can gain social benefits.


Together, these three concepts create a framework for understanding human social behavior.


Research Methodology


Longitudinal Qualitative Method has been used in this study.


 Research Features:


Duration: One semester


Participants: 10 classmates


Data Source: WhatsApp and Messenger text messages


Analysis Method: Observation and Text Analysis


A student observed social interactions with his classmates and analyzed their behavior.


 Findings

Two main trends were observed in the data analysis.

1. Viewing relationships as a tool.

Many participants used relationships as a means of obtaining benefits.


2. Thinking about profit and loss

When help was needed, they behaved very politely and friendly.But after the need was over, the communication decreased.


This behavior can be compared to the concept of utility in economics, where the value of something decreases when it is no longer needed.


 Discussion

The results of this study provide an integrated explanation of psychology and economics.

 

When people want to benefit from a social relationship, they:


Behave purposefully


Create a good image

Use the relationship as a tool


But when their needs are met, the importance of that relationship may decrease.


Behavioral economics is important to explain this behavior, because it shows that human decisions and behavior are the result of both psychological and economic influences.


 Conclusion 


This study suggests that human behavior in social interactions is often a combination of profit-loss calculations, purposeful behavior, and image management.


Using the concepts of economics and psychology together, human social behavior can be explained more clearly.


Therefore, it can be said that economics, psychology, and behavioral psychology in social interactions are deeply related to each other.





Profit–Loss Calculation in Social Interaction

│

├── 1. Introduction

│   ├── Social relationships influenced by emotions + profit-loss thinking

│   ├── Behavior changes after personal benefit is achieved

│   ├── Social Exchange Theory (Psychology)

│   └── Utility concept (Economics)

│

├── 2. Research Question

│   ├── Can social behavior be explained using psychology + economics?

│   ├── Do people evaluate relationships in terms of cost-benefit?

│   └── Does relationship importance decrease after need is fulfilled?

│

├── 3. Theoretical Framework

│   ├── Social Exchange Theory

│   │   └── Relationships based on cost vs benefit

│   │

│   ├── Instrumental Behavior

│   │   └── Behavior directed toward achieving goals

│   │

│   └── Impression Management

│       └── Creating positive image for social advantage

│

├── 4. Research Methodology

│   ├── Method: Longitudinal Qualitative Study

│   ├── Duration: One semester

│   ├── Participants: 10 classmates

│   ├── Data: WhatsApp & Messenger messages

│   └── Analysis: Observation + Text analysis

│

├── 5. Findings

│   ├── Relationships used as tools for benefit

│   └── Profit–loss thinking in interaction

│       ├── Friendly behavior during need

│       └── Reduced communication after need

│

├── 6. Discussion

│   ├── Integration of psychology + economics

│   ├── Purposeful behavior in relationships

│   ├── Impression management for benefit

│   └── Behavioral economics explains decisions

│

└── 7. Conclusion

    ├── Social behavior = profit-loss + psychology + economics

    ├── Human interaction is goal-oriented

    └── Psychology and economics are deeply interconnected


©à¦¦্বীন সাঈদীন 


#Social Exchange Theory, Instrumental Behaviour, Impression Management, Social Behavior, Psychology, Economics#


Not specified

Popular posts from this blog

Mental Sickness

By SAYEEDIN
Mental soundness is a very important issue for any nation, society, family, or individual. A person can be considered mentally sound if they are satisfied with their own abilities, can adapt to changing situations and extreme work pressure, and can support their family in critical times. Conversely, a person who fails to adapt to critical situations, struggles under extreme work pressure, and cannot support their family may be considered mentally ill. A mentally healthy person maintains positive thoughts, approaches challenges with optimism, and seeks lessons even in negative situations. They remain calm, patient, and tension-free, and actively look for solutions to overcome problems. On the other hand, people who cannot do this often suffer from depression, even when they consult psychologists and take medication for extended periods. In such cases, they may isolate themselves from family and society, gradually becoming more vulnerable to mental illness. In extreme situations, some ma...
Read more

E-learning

By SAYEEDIN
  On the basis of the present situation is it possible to run on academic activities in every sphere of educational sectors physically? Absolutely not and this is why to keep activating the educational sector, there is no alternative to E-Learning, an online learning platform, offers distance learning of which effectiveness reflects upon students positively for the most part of every circumstance. E-learning is an efficacious internet technology/worldwide computer network based on a relevant didactic platform/stage that plays a vital role to promote and activate the educational system as far as effective.The system is the only solution to activate our educational system more vibrant incase of the critical situations are going on.   First of all, the E-Learning system has added a new dimension and it's a far reaching effect in every stage of our educational management system and the utility's positive reflections are being precise. Using it’s supportive Internet technolog...
Read more

Imperialism VS Terrorism

By SAYEEDIN
Imperialism VS Terrorism  If any country becomes the possessor of economic and nuclear power, a so-called trend comes to light. This trend is revealed through the application of diplomatic foresight. The person who applies this diplomatic prudence to all parts of the world becomes internationally authoritative. What is imperialism? Imperialism is the show-off practice of authority and power on a comprehensive scale. The policy taken for the expansion of an empire’s amplitude through the application of diplomatic foresight by a tactful leader is known as imperialism. How does imperialism expand? When any country becomes prosperous and durable in the economy, in the military defense system, and in nuclear energy management, the so-called authoritative tendency is shown by the country upon another country. Important characteristics of imperialism: Dominion-based attitude Influence-based attitude Ability to control Exhibition of power Revelation of superiority How does the dominant cou...
Read more

At Sixes And Sevens

By SAYEEDIN
The whole international market is occupied by Chinese products. Underdeveloped, developed countries are being benefited by the implementation of China’s product quality diversification. China’s economic model has been enriched by modern technological advancements producing a wide range of products and huge massive demands throughout the world. The export sector is reaching a higher level.  China’s economy is almost swallowing the American economic aggression.  South Asia is one of America’s investment sectors that is slowly being replaced by China’s well-timed economic revolution. The United States has not been able to take its long-winded bilateral advantageous deal with Iran conspicuously.   America is running on its utmost recovery from economic recession. Joe Biden’s administration has already garnered eulogy on account of coming out of the Trump administration’s mistakes, indeed. The Biden administration has welcomed the positivity of the climate change agreemen...
Read more

Bilateral Coherence and Dissonance Relationship between Western and Bangladeshi Culture

By SAYEEDIN
Culture is the coordination of subjective and objective elements of nationalism of any country bearing individual belief, sense and practice of religionism, moralism, and mannerism, along with an appliance of intellectual, artistic, and aesthetic versatile perception of which reflection is in all around the national organ. In other words, the concept of the entity and versatile signs related to nationalism reveal signs of a culture of any country on the chest of the worldwide platform, and eventually, culture plays a vital role to represent the country. However, each country bears its own culture relying on its own entity; and so in case of both western culture and Bangladeshi culture have their own cultural possessions in spite of having national and geographical variations, consonance and dissonance are visible in the case of the two countries' culture. Be that as it may, the similarities are individualism, mannerism and appliance of belief based on the social, religious, and mor...
Read more

Mentalism:07

By SAYEEDIN
Image
 A few people in the world are free from psychological problems, but not too thoroughly. Whatever these kinds of people are able to take challenges in any critical situation. The human mind’s alteration revolves through one kind of circle that goes to various intuitions which are all the time controversial to one another. Mental intuitions bear both positive and negative regulative which are abstractive. Be that as it may, the human mind’s state is controlled by abstractive negativity. Standing against antagonistic situations, the mind’s state goes to deterioration. Not to get any supportive phenomena and persona for his /her part, negative intuitional elements amass on the increase. And so, its dimension goes to at the ultimate position, and the explosion of it culminates on the way that’s why it is too difficult to manage in the case of the persona; and eventually, extreme initiatives and actions are taken by the persona, and it goes without saying that how much destructive menta...
Read more

Shrewdness

By SAYEEDIN
Only the Repression of the Rohingya’s was of ethnicity and religion? Nothing else was behind it? Since the 1500 century, one kind of Arabian descendant made their habitats in the north-west of the Barma for the living who carry their distinct religious-linguistic-historical-cultural-traditional entities, known as Rohingya, anthropic minority. Previous generations had glorious days, political rights, civil rights, constitutional rights, distinct recognition comprehensively, but from the half of the past century to the present century repression upon Rohingya is the biggest description in the field of minority maltreatment. Not only its continuation of one era but also era after era it is being augmented. Even cruelty’s type and its implementation upon the Rohinyans by the Military Junta Forces exceed imagination. Apparently, the two aspects of the repression of the Rohingyas are caught sight of in the superficial eyes. The first is religious suppression and the other is racial repressi...
Read more

Oppression upon Women Folks

By SAYEEDIN
Women play a vital role in society as mothers, wives, sisters, friends, and trustworthy companions. Men can live happily depending on the support and presence of women. However, in many male-dominated societies, women are often suppressed and dominated. What is truly desirable for women in society? According to statistics from 2019, on average, 13 women are raped every day, totaling 4,745 women and girls per year. This is a shameful reality, reflecting our failure to ensure safety and security for women. If women are not allowed to develop their inherent and external qualities, skills, and working abilities, the development of our country and society will remain incomplete. Fresh recreational policies are essential. First, obscene and explicit films, songs, or programs must be strictly prohibited through rigid laws. Secondly, all obnoxious foreign films should be banned from import. Channels or platforms promoting obscene content should be blocked; otherwise, young generations may be m...
Read more