Article,
Cultural Differentiation of Negotiating Agents
Group Decision and Negotiation, 21 (1): 79--98 (2012)
DOI: 10.1007/s10726-010-9190-x
Abstract
Negotiations proceed differently across cultures. For realistic modeling
of agents in multicultural negotiations, the agents must display
culturally differentiated behavior. This paper presents an agent-based
simulation model that tackles these challenges, based on Hofstede’s
model of national cultures. The context is a trade network for goods
with a hidden quality attribute. The negotiation model is based on
the ABMP negotiation architecture and applies a utility function
that includes market value, quality preference and risk attitude.
The five dimensions of Hofstede’s model are the basis for the modification
of ABMP parameters and weight factors in the utility function. The
agents can observe each other’s group membership and status. This
information is used, along with the indices of Hofstede’s dimensions,
to differentiate behavior in different cultural settings. The paper
presents results of test runs that verify the implementation of the
model. The model helps to explain behaviors of actors in international
trade networks. It proves that Hofstede’s dimensions can be used
to generate culturally differentiated agents. Further validations
of the model with case studies from literature and experiments have
yet to be conducted. Extensions can make this model a useful tool
for training traders who engage in cross-cultural negotiation and
for implementation in negotiation support systems.
