Publication

EXTERNALITIES IN EXCHANGE NETWORKS AN ADAPTATION OF EXISTING THEORIES OF EXCHANGE NETWORKS

Dijkstra, J., Nov-2009, In : Rationality and Society. 21, 4, p. 395-427 33 p.

Research output: Contribution to journalArticleAcademicpeer-review

The present paper extends the focus of network exchange research to externalities in exchange networks. Externalities of exchange are defined as direct effects on an actor's utility, of an exchange in which this actor is not involved. Existing theories in the field of network exchange do not inform us on how externalities are predicted to affect behavior in exchange networks. Three prominent theories in the field, core theory, power dependence theory and exchange resistance theory, are extended to exchange networks with externalities, allowing three main conclusions about the expected effects of externalities in exchange networks: externalities (i) change actors' payoffs, (ii) change the exchange pattern, and (iii) change the power distribution across actors. The investigated theories yield predictions concerning the occurrence and magnitude of these effects. A method is proposed to separate the effect of (i) the network, (ii) the externalities, and (iii) the interaction between network and externalities.

Original languageEnglish
Pages (from-to)395-427
Number of pages33
JournalRationality and Society
Volume21
Issue number4
Publication statusPublished - Nov-2009

    Keywords

  • core, exchange networks, exchange resistance, externalities, power dependence, POWER, CORE

ID: 4971595