ECONOMICS. Matching markets in the digital age

Since the early 2000s, computer-mediated communication (CMC) has grown rapidly, playing a crucial role in self-development. A key distinction between CMC and real-life interactions is the lack of a physically present partner. This absence makes non-verbal cues such as facial expressions, body language, and paralinguistic signals unavailable in CMC platforms like email, instant messaging, or social media. The lack of these cues can create ambiguity and complicate how feedback is interpreted.The...

As formulated by John Thibaut and Harold Kelley, Social Exchange Theory explains human relationships as economic-like exchanges that maximize rewards and minimize costs. This theory suggests that individuals engage in relationships to gain benefits and reduce burdens, similar to economic transactions. It has been widely applied to various types of relationships, including romantic, professional, and social interactions.Rewards and Costs in RelationshipsRelationship rewards include emotional...

We have discussed why we form relationships, what attracts us to others, and different types of love. But what determines whether we are satisfied with and stay in a relationship? One theory that provides an explanation is social exchange theory. According to social exchange theory, we act as naïve economists in keeping a tally of the ratio of costs and benefits of forming and maintaining a relationship with others (Rusbult & Van Lange, 2003).