Individualism and Collectivism in Trade Agents

Authors:
Gert Jan Hofstede;Catholijn M. Jonker;Tim Verwaart
Affiliations:
Wageningen University, Wageningen 6700 HB;Delft University of Technology, Delft 2628 CD;LEI Wageningen UR, den Haag 2502 LS
Venue:
IEA/AIE '08 Proceedings of the 21st international conference on Industrial, Engineering and Other Applications of Applied Intelligent Systems: New Frontiers in Applied Artificial Intelligence
Year:
2008

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Abstract

Agent-Based Modeling can contribute to the understanding of international trade processes. Models for the effects of culture and cultural differences on agent behavior are required for realistic agent-based simulation of international trade. This paper makes a step toward modeling of culture in agents. The focus is one of the five dimensions of culture according to Hofstede: individualism versus collectivism. The paper presents an analysis based on social science literature about national cultures. For cultural differentiation of agent behavior, rules are formulated for individualist versus collectivist agent behavior with respect to negotiations, cooperation or defection in the delivery phase of transactions, trade partner selection, and trust. Example computations demonstrate the feasibility in multi-agent simulations.