BROWSE

Haggle

What is 'Haggle'

When two parties involved in the purchase of a good and service negotiate the price until both parties can mutual agree on a price. The process of haggling involves two parties making offers and counteroffers to each other. The individual trying to buy the good and service is trying to pay the least amount possible, while the seller's primary objective is to maximize gains.

Explaining 'Haggle'

Globally, haggling has different accepted levels of tolerance. In Europe and North America, haggling is generally accepted for larger ticket items like automobiles, jewelry and real estate but not for smaller day-to-day items. In other regions around the world, haggling for smaller items is generally accepted and is part of the culture. In these region,, children are taught to haggle at a young age to ensure that they are receiving the best perceived deal when making any type of purchase. The acceptance of haggling can also be determined by location. In department and grocery stores, haggling is prohibited, but at places like flea markets, marketplaces and bazaars, haggling is accepted and encouraged.


Further Reading


Haggling for the equilibrium: the renegotiation of the Austrian coalition, 1959
www.cambridge.org [PDF]
… Consumers often haggle over price and features in a variety of shopping contexts … that the essence of bargaining "surely transcendsthe satisfaction of mere economic gain." Increased … We examined the noneconomic motives for consumer price haggling by conducting a series of …

Increasing price transparency: Implications of consumer price posting for consumers' haggling behavior and a seller's pricing strategiesIncreasing price transparency: Implications of consumer price posting for consumers' haggling behavior and a seller's pricing strategies
www.sciencedirect.com [PDF]
… Consumers often haggle over price and features in a variety of shopping contexts … that the essence of bargaining "surely transcendsthe satisfaction of mere economic gain." Increased … We examined the noneconomic motives for consumer price haggling by conducting a series of …

Institutional change and economic development: a conceptual analysis of the African caseInstitutional change and economic development: a conceptual analysis of the African case
www.emerald.com [PDF]
… Consumers often haggle over price and features in a variety of shopping contexts … that the essence of bargaining "surely transcendsthe satisfaction of mere economic gain." Increased … We examined the noneconomic motives for consumer price haggling by conducting a series of …



FAQ


What is bargaining?

Bargaining is a type of negotiation in which the buyer and seller of a good or service debate the price and exact nature of a transaction. If the bargaining produces agreement on terms, the transaction takes place.

What does bargaining allow?

Bargaining allows for capturing more consumer surplus as it allows price discrimination, a process whereby a seller can charge a higher price to a more eager buyer (due to his or her having more disposable income or simply by being more eager).

Is bargaining always allowed?

No, not all transactions are open to bargaining. Both religious beliefs and regional custom may determine whether or not the seller is willing to bargain.

Does haggling have any negative connotations?

Yes, dickering refers to the same process but with slight negative connotation.

Is there an equivalent term for haggling in other languages?

Yes, bickering refers to this process in other languages such as Germanic ones like English and Dutch.

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