Network Exchange Theory: Recent Developments and New Directions

Abstract

The new millennium opens the third decade of work on network exchange theory. During two decades of continuous growth, the program has been tested as intensively and extensively as any in sociology. This article summarizes existing research and describes new directions. First, we describe basic network connections and recently discovered structural power conditions that sharply affect exchange ratios. Then we show how game theory enhances understanding of collective action in exchange networks. Two new research programs link network exchange theory to status characteristics theory: the first demonstrates that power produces status, and the second shows how status value produces power. Finally, we discuss how questions about network dynamics, complexity, and legitimation define paths for future theory growth.