1Wageningen University

Cross-cultural negotiation poses special challenges. In this paper an agent-based simulation model is presented that tackles these challenges. The model represents a trade network for a good with a hidden quality attribute. Agents have culture scripts that are based on Hofstede’s dimensions of culture. They have visible group membership and status attributes that are used by their hidden cultural rules of behaviour. They bargain according to the ABMP bargaining model that has a utility function consisting of expected gain, quality, and risk. The paper presents the model and shows results of test runs. These test runs have face validity when compared with real negotiations. Formal tests of correspondence between the model and the trade game on which is it based have yet to be conducted. Extensions will make it a useful tool for training traders who engage in cross-cultural bargaining. The present version is helping to explain the behaviours of actors in international trade networks. It proves that Hofstede’s dimensions can be used to generate agents that are believable negotiators