Game‐Based Simulation for Cross‐Cultural Decision Making Training

Increasing globalization has had a major impact on manufacturing and service industries as well as on coalition operations conducted by the military. What is common to both the commercial and military sectors is the recent surge in interest in cross‐cultural decision making (CCDM) training. Existing CCDM training approaches tend to employ either some form of multi‐agent simulation or some variant of classical game theory. Despite their manifest benefits, these approaches have specific limitations that need to be overcome to create an effective cross‐cultural training system. Multi‐agent simulations typically lack theoretical underpinnings while classical game theory‐based approaches take a limited view of strategic decision making. Specifically, by adopting a Western view of rationality, game‐theoretic approaches fail to accommodate considerations such as fairness, altruism and reciprocity. Empirical research in strategic economic games has shown that humans respond to more than merely monetary incentives. In particular, research has shown that cultural norms play a central role in human decision making behavior, especially in non‐Western cultures. This paper presents an innovative approach to game‐based simulation that combines findings from behavioral game theory with classical game theory and multi‐agent simulation to exploit the strengths of each approach while making learning enjoyable, memorable, and fun. An illustrative game‐based simulation for CCDM training is also presented. The simulation framework is equally applicable to teaching other soft skills as well as skills that are too hazardous or too expensive to teach in the realworld through live exercises. © 2012 Wiley Periodicals, Inc.