Cultural Differentiation of Negotiating Agents

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.

Creating a World for Socio-Cultural Agents

“…Actually, simulations have been carried out on this principle. In applications of trade negotiation [26] and consumer behaviour in car choice [27], culture as operationalized by Hofstede dimension scores was used to modify agent behaviour in agent-based models. In the case of trade negotiations, face validity was achieved, and in the case of car selection, the model reproduced cross-national purchase patterns.…”

Replicating Hofstede's Cultured Negotiation: A First Update

“…In this paper, our objectives were to replicate that work, following the authors' suggestion for further validation [1], p.19, and to highlight the difficulties encountered and suggest solutions in model replication. The replicated model was implemented in Java, using the Repast Simphony 1 toolkit, while the original model was implemented in Cincom Smalltalk, using the CORMAS 2 toolkit.…”

“…Hofstede et al multi-agent simulation in [1] represents a milestone in the generation of culturally differentiated agents: Hofstede's dimensional model of culture is applied on agents that negotiate goods in a trade network, reproducing qualitative aspects of actual intercultural trade reported in the literature [10] and showing that the model is sensitive to variations on the cultural dimensions values.…”

“…Then, we briefly introduce the original model [1]. Then, we move on to the difficulties we encountered in the replication process.…”

“…Next, we present the replicated model, according to [7] and [4] standards. We refer you to [1] for more complete description of the original model and theoretical background. Results are analyzed according to the original simulation hypotheses and results.…”