Exploring the Interplay of Fixed-Pie Bias, Mental Models Convergence, and Time Pressure in Intercultural Negotiations

Abstract: This study explores the moderating role of time pressure in cross-cultural negotiations. Additionally, fixed-pie bias, which hinders integrative opportunities, is examined alongside the impact of shared mental models on negotiation behaviors (strategies) and outcomes in intra- vs inter-cultural negotiations. The sample, comprising 300 U.S. and Hong Kong Chinese professionals (with no prior exposure to the culture of their counterpart), engaged in English-language negotiations involving distributive and integrative issues. Satisfaction, fixed-pie bias, and mental models were measured using established approaches. Our findings show that intercultural negotiators achieve higher outcomes compared to intra-cultural negotiators. We also explore the mediating mechanism that might account for the differential effects of time pressure in increasing the joint outcomes in intra- vs intercultural negotiations. Understanding these dynamics contributes practical insights for negotiators navigating cross-cultural scenarios.

Keywords: time pressure, negotiation, culture, fixed-pie bias, mental models