Virtual Reality Negotiation Training Increases Negotiation Knowledge and Skill

In this paper we test the hypothesis that Virtual Reality (VR) negotiation training positively influences negotiation skill and knowledge. We discuss the design of the VR training. Then, we present the results of a between subject experiment (n=42) with three experimental conditions (control, training once, repeated training) investigating learning effects on subjects’ negotiation skill and knowledge. In our case negotiation skill consists of negotiation outcome (final bid utility) and conversation skill (exploratory conversational choices in VR scenario), and negotiation knowledge is the subjects’ quality of reflection upon filmed behavior of two negotiating actors. Our results confirm the hypothesis. We found significant effects of training on conversation skill and negotiation knowledge. We found a marginally significant effect of training on negotation outcome. As the effect of training on negotiation outcome was marginally significant and only present when controlling for overshadowing effects of the act of reflecting, we postulate that other learning approaches (e.g., instruction) are needed for trainees to use the information gained during the joint exploration phase of a negotiation for the construction of a bid. Our results are particularly important given the sparse availability of experimental studies that show learning effects of VR negotiation training, and gives additional support to those studies that do report possitive effects such as with the BiLAT system.