Dear colleagues,

 

The Department of Economics cordially invites you to the WU Economic Research Seminar (Department Seminar) on Wednesday, January 10, with

 

Ursula F. Ott

(Kingston University London)

 

on

"The International Negotiation Dance: A Bargaining Mechanism with an Experimental Approach"

 

Abstract: This article develops a cross-cultural bargaining mechanism to provide insights, explanations and solution concepts for international negotiations and conflict resolution. As a consequence of globalization, people have learnt to communicate and negotiate across geographical and cultural borders. In the model, culturally programmed bargaining behavior is mapped onto a buyer-seller interaction. In line with previous studies, this article considers the initial offer as a signal of the length of negotiations for the players to get information about the final price and the costs involved. International negotiations in this context are analyzed as signaling games with a pooling equilibrium and two separating equilibria to predict the outcome of cross-cultural bargaining scenarios. The model finds that the disutility of bargaining and the cultural loss of bargaining are new angles to interpret international negotiation outcomes and offer us a research opportunity for understanding and circumventing international conflict. Experimental evidence shows the initial price offer as an indication of the negotiation process and outcome.

 

Place and time: Wednesday, January 10, 4.30 – 6.00 p.m., Campus WU, Welthandelsplatz 1, 1020 Vienna, building D4, 2nd floor, Department meeting room 2.008

 

 

With best regards,

Harald Oberhofer

 

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Univ.-Prof. Dr. Harald Oberhofer

 

Institute for International Economics

WU Vienna University of Economics and Business

Phone: +43/1/31336-4984

Fax: +43/1/31336-4984

Email: harald.oberhofer@wu.ac.at

Webpage: https://www.wu.ac.at/ie/mitarbeiter/harald-oberhofer/

 

Austrian Institute of Economic Research (WIFO)

Phone: +43/1/7982601-468

Fax: +43/1/7989386

Email: harald.oberhofer@wifo.ac.at

Webpage: http://www.wifo.ac.at/harald_oberhofer