Generalized Exchange and Social Dilemmas

In generalized exchange, the rewards that an actor receives usually are not directly contingent on the resources provided by that actor; therefore free riding can occur. The actor can receive benefit without contributing. Scholars interested in generalized exchange systems have often overlooked this inherent free-riding problem and thus have been overoptimistic in concluding that generalized exchange promotes mutual trust and solidarity among the participants. A more complete understanding of generalized exchange requires that the underlying social dilemma in such situations be appreciated fully. This paper represents our initial efforts to bridge two research traditions ― research on social exchange and research on social dilemmas