Cross-Cultural Difference in Negotiation Persistence and Negotiation Rationales: Contrasting American and Indian Negotiator Behavior

Abstract: Though negotiation shapes some of our most important outcomes, from the prices we pay for our homes to our work incomes, we know surprisingly little about the negotiation process, or how these processes vary across cultures. In our investigation, we contrast Indian and American negotiation behavior and focus on differences in negotiation persistence - how long negotiators persist before they accept a counterpart’s offer, and negotiation rationales - the reasons people give to support a higher/lower price. Using a simulated car negotiation, we find that compared to American negotiators, Indian negotiators (a) asked more questions, (b) made more offers, and (c) provided a larger number of rationales for why the price of the car should be lower, all of which indicated greater persistence during the negotiation. Rational types and additional variables such as negotiation enjoyment are also explored.

Keywords: Cross-Cultural Negotiation, India, America