So how do you manage or win at this game of exchange?
identity depends on a few things.
The first is your ability to control the rules.
Do you write the laws?
Did you define the boundary or the game rules of exchange?
And a great example of this is Robert Caro's book, The Power Broker.
who ends up controlling the transit construction budgets in New York City.
he did this by writing himself into the rules or the legislative rules of budgets.
And through this he elected new officials or helped promote them.
made it the kind of landscape it is today in New York.
And this is a great example of controlling rules.
particular you need to consider whether you have resources everyone needs.
whether other firms or organizations have resources that you're dependent on.
might have to exchange far more for that one thing you really need just to get it.
And if they have that leverage over you, you're kind of at a disadvantage.
The third thing is control over preferences or identities..
So, you want to transform wants so others demand the goods you provide.
You make other's preferences and identities incompatible with core ones.
controlling an identity and what it means.
is get rich, resources, seize a hostage.
So this is the kind of idea behind exchange.
Of course, I don't want you to follow this literally.
to think about how to manage exchange relations.
how to manage or win at it, let's go back to coalitions and explain how they work.
reforms are pursued within a context of say potential conflict.
identities that don't always align.
They're juxtaposed, so they require this kind of bargaining.
capable of making decisions that are favorable to them.
And this is obviously difficult because of all the internal consistencies.
The fact that others in this loose coalition are, have other interests.
as to what decisions will be made by the coalition.
And this kind of fallows the core process we described above of exchange.
coordinated action and distributed to competing coalition members.
Hula will cite are strategic incentives, information, and symbolic benefits.
Something we'll discuss in the next lecture.
So who will be in the coalition?
How are the spoils divided?
which seems kind of primary here at times, and the logic of appropriateness.
you reap the most rewards.
the standards that you adhere to.
that all the same features that I'm relating here were coarsely related there.
anchor the description of coalitions more in a process of bargaining and exchange.
in the prior slide, I described some of the means we use to control exchange.
And that can be extended to a coalition.
So there's a whole variety of moves that managers use.
by which exchanges are negotiated.
Now, what exactly do I mean by this?
What kinds of interactions or exchanges create coalitions?
logrolling, forming alliances, joining associations.
I mean, logrolling is a good example of an odd kind of exchange.
sometimes there're issues that arise that I may not care deeply about.
And I basically go along with them because other people care more about them.
they don't care so much about.
This is called logrolling and you kind of exchange acquiescence of sorts.
suddenly people make a stink over something they don't care about.
the lack of agreement and all kinds of problems.
different kinds of games and assumptions in them.
And here are variety of them.
So coalitions are a dynamic accomplishment through exchange.
All kinds of wrangling and bargaining.
there's a variety of things that can threaten them.
Jim March writes about this in his discussion of coalitions.
He says that when issues get cleared up or resolved members tend to leave.
So clarity or resolution is not always good for a coalition's survival.
Second outcome optimism is often needed.
you're trying to bargain for a coalition.
danger of disillusion during the actual implementation of a coalition's reform.
And then finally, members often exaggerate their support.
So as the coalition adopts and implements things, it starts to fall apart.
formation is had they no longer care.
dynamic that they seem to start very strong and full of hope.
And they kind of end weak or fall apart during implementation.
logrolling, all that kind of exchange efforts.
And then once you maintain them or accomplish them.
control over resources and dependencies.
So as to maintain them through the process of implementation.
trials and tribulations along the way.