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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 actor. Moving one step further, as shown in Figure 2, sanctions can be paired to define three basic types of social relationships: exchange, coercion, and conflict.

Figure 1 Types of Sanctions

An orienting perspective associated with this formalism is a view of society common to the classical theories of Marx, Weber, Simmel, and Michels. As a part of that view, analyses begin by assuming that the interests that actors pursue are not carried by actors from one social location to another. Instead, interests are embedded in social relations and reflected in actors while acting in that relation. Interests are valued states that actors seek. For example, when any of the four classical theorists found that masters exploited their slaves and capitalists profited from their workers, they framed their explanations, first, in terms of values and beliefs embedded in master-slave and capitalist-work relations. Nevertheless, classical theorists also understood that at times, values and beliefs acquired at one social location affect actions in another.

Like classical theory, elementary theory builds its simplest explanations by reflecting actors' values and beliefs from relations and structures. For example, in the coercive relationship of Figure 2, C has an interest in gaining D's positive sanction by threat of the negative sanction that D has an interest in avoiding. When sanctions are quantitative, elementary theory seeks to relate the size of positive sanction that D will send to the size of negative that C has as a threat. The interests in seeking large positives and avoiding any negatives are embedded in the relation displayed. Nevertheless, paralleling the classics, when actors carry interests to a relation, elementary theory can be used to build the more complex models needed to accurately predict behavior.

Figure 2 Three Types of Social Relations

Beyond recognizing that actors' interests are in social relations, classical theory understood that the conditions under which interests are pursued are given by the social structures in which relations are embedded. Sharing that understanding but using concepts as simple and few in number as possible, elementary theory builds models for social relations in social structures as shown in Figure 3. Then, modeled structures are made dynamic so that they can be compared with corresponding social structures in the world for explanation, prediction, and theory testing.

Figure 3 A Branch Connected at A

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