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Elementary theory is a theory for human activity in social relations embedded in social structures. The theory takes the following form: Fundamental concepts are introduced by interpreting network points and arcs such as those of Figure 1. Derived concepts are built up, first, from combining fundamental concepts and, later, from combining fundamental concepts and concepts already derived. For example, the Points A and B become social actors as formulations are introduced for preference system, belief system, and decisions. Then the sanction displayed in Figure 1.a is an act that positively affects the preference state of B, the actor receiving it. By contrast, the sanction of Figure 1.b negatively affects the preference state of B. Sanctions may also affect the preference state of the transmitting ...

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