Identity and Power Use in Exchange Networks

We introduce a theoretical argument about how the fairness identity influences exchange behaviors in negotiated exchange networks. To test this argument, we use data from a laboratory experiment. Results demonstrate that by providing manipulated feedback that is inconsistent with the fairness identity standard (actual appraisals), inequality changes in the direction that counteracts the feedback. In addition, when high power actors think their high power exchange partners view them as either more or less fair than how they see themselves (reflected appraisals), inequality again changes in the direction that counteracts the nonverifying feedback. We discuss how considering both identity and exchange processes yields new insights into exploitative behavior in exchange.