The Role of Power Distance and Explanation Facility in Online Bargaining Utilizing Software Agents

Online transactions have become increasingly popular and deserve greater attention from a research perspective. Whereas there are various aspects of online transactions, this study specifically examined an online bargaining scenario utilizing software agents. User’s performance and attitudes were studied in a 2x2 factorial-design experiment. The independent variables were power distance (a dimension of culture)-for reasons associated with increasing and irresistible globalization, and explanation facility-for its conjecturable benefits in helping users to better understand and work with their software agents. Results showed these factors to have an interaction effect on task performance; as well, explanation facility exhibited main effects on trust and satisfaction. The findings have implications for system designers and builders; they also help managers in tailoring their expectations on what technology can deliver-under which conditions.