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Existing theories explain how the states of nominal characteristics acquire status value and the implications of status characteristics for the distribution of rewards, honor, and esteem in groups. It is less clear how characteristics lose status value. In this article, we combine the logic of status construction theory with loss aversion from decision theory to develop novel predictions about status loss. We predict that removing the mechanism of status construction theory will result in fading consensual status beliefs and that this will occur faster for low status actors. This results in a period of conflicting or asymmetric status beliefs between groups. Results from a six-condition controlled experiment support key predictions of consensual status loss, with low status actors viewing a gain in their status faster than high status actors view a loss to theirs. We discuss ways to extend and refine the work and the implications of our theory for racial and gender status-based inequalities. [ABSTRACT FROM AUTHOR]

Network structures have strong effects on the frequency and terms of negotiated exchanges, shaping who exchanges with whom and who fares better or worse. In this study we ask how exchange patterns of commitment and inequality are affected when negotiated exchanges are combined with reciprocal exchanges in more complex relationships of embeddedness. Drawing on the organizational literature on embeddedness and economic performance and the social exchange literature on forms of exchange and integrative bonds, we predict that embedding negotiated exchanges in a relationship of reciprocal exchange will increase the strength of behavioral commitments and reduce the effects of structural power differences on inequality. We base these predictions on two theoretical mechanisms that link forms of exchange to bonds of attachment: the relational climate of trust and solidarity created by reciprocal exchange, and the more cooperative task structure of negotiated exchange. A laboratory experiment provides substantial support for our logic and predictions. (Contains 1 figure, 4 tables and 12 footnotes.)