Network knowledge and the use of power

Abstract

Complementing recent work on the effects of power on network perceptions, we offer a theory specifying how knowledge of network structures and exchange processes differentially affect the use of power by advantaged and disadvantaged positions. We argue that under certain conditions, network knowledge is beneficial to occupants of low-power positions, but not to occupants of high-power positions. Any low-power actor can benefit from having superior information, but if all low-power actors have equally sound knowledge, then all are worse off—a type of social trap. We tested these arguments by manipulating power and the availability of information on network structure and exchange processes in an experimental exchange network setting. The results were supportive.