Business Negotiation Culture in China - A Game Theoretic Approach

Yong Jiang


There are numerous researches on the relationship between culture and business activities. Based on the Chinese negotiating culture, this paper utilizes game theory modeling method to summarize the major style of negotiations between Chinese businessmen and foreign businessmen. First, this paper analyzes the impact of culture on business negotiations, including priorities issues, negotiation strategy and negotiating style. Second, the paper puts forward the concept of “acculturation” in the analysis of cultural adaptability of Chinese businessmen, and it also clarifies the general as well as the potential reasons for the low acculturation for Chinese businessmen. Etiquettes for general business communications in China are also discussed in detail. In theoretical part, the paper analyzes negotiating sytle of Chinese businessmen with cultural characteristics. Due to the strategic feature of this model, a specific game theoretical model is built, and then a specific example of Chinese and foreign business price negotiations is used to show the applicability of the model. Finally, the article states the conclusions and direction for further research.

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International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

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