We analyze and review how research on emotion and emotional phenomena canelaborate and improve contemporary social exchange theory. After identifyingsix approaches from the psychology and sociology of emotion, we illustrate howthese ideas bear on the context, process, and outcome of exchange in networksand groups. The paper reviews the current state of the field, develops testablehypotheses for empirical study, and provides specific suggestions fordeveloping links between theories of emotion and theories of exchange.