Doctoral Dissertation Research: The Effect of Social Uncertainty in Networks of Social Exchange

Stanford University, Stanford CA

Investigators

Abstract

SES-0002285 PI: Karen S Cook, Eric Rice This project develops a formal theory of exchange behavior under conditions of uncertainty, and provides a partial test of the theory using laboratory experiments. Behavior in exchange networks has been studied for many years, and several theories have been developed that predict coalitions and point splits quite accurately. Building on that work, this theory predicts different strategies for actors in positions differing in bargaining power. It uses ideas from work on uncertainty by Kahneman and Tversky. New mechanisms in this theory are reference dependence, diminishing sensitivity, and loss aversion. All have been widely used in theories of games, and this project adapts them to the case of network bargaining. Results will be used to further develop theoretical understanding of interrelations of structural power and co-actors behavior in predicting bargaining mechanisms and winnings.