Power Relations in Exchange Networks

Abstract

Many theories address the problem of how a social structure affects the experiences and behaviors of its members.This paper offers a network-exchange theory to solve this problem.Previous research has shown that the nature and outcomes of negotiations among individual or corporate actors can be inferred from their network positions.The impact of this research has been limited because its theory does not enable the researcher to locate power positions in the networks.We offer a theory that is both consistent with all previously reported experimental research and is generalized to conditions not considered by other formulations.In addition to supporting derived hypotheses pertaining to network-based power, our experiments demonstrate, among other things, that certain unstable networks break down to form stable substructures and that some networks contain overlapping but autonomous domains of power and exchange.Although no single exchange theory dominates the social sciences, a fairly coherent social-exchange perspective exists.In this perspective, social structures and processes impinge on and emerge from resource and sanction transfers between individuals and/or collectivities.'Recently, some theories have moved beyond two-party exchange contexts to focus on networks of exchange relations.As structural theories, network-exchange theories attempt to explain how macro-properties bear upon micro-units within structures.Concretely, they try to show how network structures affect the power of actors to extract valued resources in their exchanges with others.