A BEHAVIORAL FOUNDATION FOR A STRUCTURAL THEORY OF POWER IN EXCHANGE NETWORKS

In this paper I propose structural criteria for power based only on si mple and valid assumptions about how individuals in exchange networks make decisions. The implication of the model is that exchange networks contain four types of components, identified by the solution to a set of equations. In coreless components, the equations are inconsistent and trading behavior is unstable In strong power components, the equat ions have a unique solution and some positions have complete power. In equal power components, the equations have a unique solution, and all positions are equal in power: In indeterminate components, the equati ons have an infinity of solutions and power is not determined strongly by structure. Formal criteria are developed for these four types of c omponents.