I read an article in the late '90s that implemented game AI a bit like that. The bots would have a number of emotions, and certain events would affect differen

I read an article in the late '90s that implemented game AI a bit like that. The bots would have a number of emotions, and certain events would affect different emotion-levels. Like, a hit/miss from a bot against another would increase/decrease the "confidence" meter, and getting hit by an enemy would increase the "fear" meter. The total state of all meters would drive the high-level behavior, like fight/flee and weapon choice.