Culture and Negotiator Cognition: Judgment Accuracy and Negotiation Processes in Individualistic and Collectivistic Cultures

In this paper, we argue that judgment biases in negotiation are perpetuated by underlying cultural values and ideals, and therefore, certain judgment biases will be more prevalent in certain cultural contexts. Based on theory in cultural psychology (Markus & Kitayama, 1991; Triandis, 1989), we considered the notion that fixed pie error, a judgment bias in which negotiators fail to accurately understand their counterparts' interests (Pruitt & Lewis, 1975; Thompson & Hastie, 1990), would be more prevalent at the end of negotiations in the United States, an individualistic culture, than Greece, a collectivistic culture. The results of a 2-week computer-mediated intercultural negotiation experiment, which took place between American students in Illinois and Greek students in Athens, supported this view. Theoretical implications of culture and cognition in negotiation are also discussed.