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The Language of Bargaining: Linguistic Effects in LLM Negotiations

Published: January 7, 2026 | arXiv ID: 2601.04387v1

By: Stuti Sinha , Himanshu Kumar , Aryan Raju Mandapati and more

Potential Business Impact:

Language changes how AI negotiates deals.

Business Areas:
Natural Language Processing Artificial Intelligence, Data and Analytics, Software

Negotiation is a core component of social intelligence, requiring agents to balance strategic reasoning, cooperation, and social norms. Recent work shows that LLMs can engage in multi-turn negotiation, yet nearly all evaluations occur exclusively in English. Using controlled multi-agent simulations across Ultimatum, Buy-Sell, and Resource Exchange games, we systematically isolate language effects across English and four Indic framings (Hindi, Punjabi, Gujarati, Marwadi) by holding game rules, model parameters, and incentives constant across all conditions. We find that language choice can shift outcomes more strongly than changing models, reversing proposer advantages and reallocating surplus. Crucially, effects are task-contingent: Indic languages reduce stability in distributive games yet induce richer exploration in integrative settings. Our results demonstrate that evaluating LLM negotiation solely in English yields incomplete and potentially misleading conclusions. These findings caution against English-only evaluation of LLMs and suggest that culturally-aware evaluation is essential for fair deployment.

Country of Origin
🇮🇳 India

Page Count
13 pages

Category
Computer Science:
Artificial Intelligence