THE LOGIC OF THE NEW THEORY AND MISREPRESENTATIONS OF THE LOGIC.

This paper presents the author's reply to comments on his article Power in Networks of Substitutable and Complementary Exchange Relations: A Rational-Choice Model and an Analysis of Power Centralization. The comment by Markovsky, Willer, Simpson and Lovaglia (MWSL) contains fundamental flaws in their discussion of the main properties of my theory and mathematical model and in their criticism of my method of comparing predictions from the model with the empirical results which I presented in my original paper. MWSL claim that internal contradictions exist between my theory and predictions from my measure of power. My model assumes that demands for exchange are expressed for each actor by his or her partners. This structural basis of power exists regardless of whether demands for exchange among the multiple exchange relations of each actor are substitutable, complementary or independent. The elasticity of substitution among each actor's multiple exchange relations is a key parameter. They also argue that the predictions of power from my model fail empirical tests based on their method. However, the method I employed is correct; their method is wrong and is inadequate for the purpose of testing my theory.