This paper proposes that organizations overcome problems of market unc
ertainty by adopting a principle of exclusivity in selecting exchange
partners. This general proposition in turn implies two specific hypoth
eses. First, the greater the market uncertainty, the more that organiz
ations engage in exchange relations with those with whom they have tra
nsacted in the past. Second, the greater the uncertainty, the more tha
t organizations engage in transactions with those of similar status. A
study of investment banking relationships in the investment grade and
non-investment-grade debt markets from 1981 to 1987 provides support
for the hypotheses. The implications of this analysis for stratificati
on and concentration in the market are discussed.