Exchange Theory January 30, 2007

Core Assumptions of Exchange Theory  structures of mutual dependence  self-interested actors  recurring exchanges with specific partners over time  all outcomes subject to satiation

Forms of Social Exchange  direct vs. indirect ABA BC DirectIndirect

Forms of Exchange  negotiated vs. reciprocal  Negotiated – actors explicitly bargain over the terms of the exchange  Reciprocal – actors initiate an exchange without knowing whether or when the exchange will be completed

Forms of Exchange  Productive – actors contribute to and benefit from a single socially produced event A B {AB}

Basic Concepts in Exchange Theory  Actors – individuals or groups acting as a single unit  Outcomes – the rewards or punishments which result from an exchange  Domain – a class of outcomes that are functionally equivalent  Primacy – number of exchange domains the relation mediates

Basic Concepts in Exchange Theory  Value – varies both across and within domains  Alternatives – two or more relations within the same exchange domain

Exchange and Power  What is power? Power = Dependence [Emerson]  The factors affecting dependence vary with the type of network connection

Network Connection  Negative connection: exchange in one relation decreases or prohibits exchange in a connected relation B AC  Dependence is a function of both value and availability of alternatives

Network Connection  Positive connection: exchange in one relation increases or facilitates exchange in a connected relation B AC  Dependence is a function of value and accessibility of resources

Power vs. Power use and Types of Power  Power – structural potential Vs.  Power use – behavioral exercise  Reward Power – control over positively valued outcomes  Coercive Power – control over negatively valued outcomes

Techniques of Power Balancing  Withdrawal B AC  network extension B DAC

Techniques of Power Balancing  status giving B AC  coalition formation B AC AC

Connections with Other Theories and Future Research  Connections with other theories:  Justice and perceptions of fairness  Affective reactions to exchange  Future research:  Fully developed theory of value  Consideration of structural change as a dependent variable