Collective action and power inequality: Coalitions in exchange networks

This paper integrates research in network exchange and collective action. Network exchange research typically assumes that structurally disadvantaged actors cannot collude. Meanwhile, collective action research shows that cooperation can be undermined by the temptation to "free-ride" on others' efforts. In this paper we extend the scope of network exchange theory by allowing low-power actors to form coalitions, We also extend game-theoretic research by embedding collective action in a network of social relations and power processes. A theory of coalitions in exchange networks is presented, which predicts the critical mass below which coalitions fail to affect power inequality and above which coalitions become unstable. We present the results of a preliminary experimental test of the theory. The results demonstrate not only that coalitions form but even that they can reverse power inequality. However, larger coalitions were more stable than predicted.