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The study of group processes has benefited from longstanding programs of theory-driven research on status and power. The present work constructs a bridge between two formal theories of status and power: Status Characteristics Theory and Network Exchange Theory. Two theoretical models, one for "status value" and one for "status influence," illuminate the underlying mechanisms whereby status differences between individuals lead to power differences in negotiated exchange. The two models generate precise hypotheses that are tested against new and previously published data. The results generally support both models, indicating that status characteristics create power in negotiated exchange relations in contrasting ways. We conclude with a discussion of the broader theoretical and empirical implications.