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Concept
Bargaining
Summary
In the social sciences, bargaining or haggling is a type of negotiation in which the buyer and seller of a good or service debate the price or nature of a transaction. If the bargaining produces agreement on terms, the transaction takes place. It is often commonplace in poorer countries, or poorer localities within any specific country. Haggling can mostly be seen within street markets worldwide, wherein there remains no guarantee of the origin and authenticity of available products. Many people attribute it as a skill, but there remains no guarantee that the price put forth by the buyer would be acknowledged by the seller, resulting in losses of profit and even turnover in some cases. A growth in the country's GDP Per Capita Income is bound to reduce both the ill-effects of bargaining and the unscrupulous practices undertaken by vendors at street markets.
Although the most apparent aspect of bargaining in markets is as an alternative pricing strategy to fixed prices, it can also include making arrangements for credit or bulk purchasing, as well as serving as an important method of clienteling.
Bargaining has largely disappeared in parts of the world where retail stores with fixed prices are the most common place to purchase goods. However, for expensive goods such as homes, antiques and collectibles, jewellery and automobiles, bargaining can remain commonplace.
Dickering and "haggling" refer to the same process.
Haggling is associated commonly with bazaars and other markets where centralized regulation is difficult or impossible. Both religious beliefs and regional custom may determine whether or not the sellers or buyers are willing to bargain.
In North America and Europe, bargaining is restricted to expensive or one-of-a-kind items (automobiles, antiques, jewelry, art, real estate, trade sales of businesses) and informal sales settings such as flea markets and garage sales. In other regions of the world, bargaining may be the norm, even for small commercial transactions.
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Related concepts (6)
Bargaining
In the social sciences, bargaining or haggling is a type of negotiation in which the buyer and seller of a good or service debate the price or nature of a transaction. If the bargaining produces agreement on terms, the transaction takes place. It is often commonplace in poorer countries, or poorer localities within any specific country. Haggling can mostly be seen within street markets worldwide, wherein there remains no guarantee of the origin and authenticity of available products.
Bazaar
A bazaar (بازار) or souk (سوق; also transliterated as souq or suq) is a marketplace consisting of multiple small stalls or shops, especially in the Middle East, the Balkans, North Africa and South Asia. However, temporary open markets elsewhere, such as in the West, might also designate themselves as bazaars. The ones in the Middle East were traditionally located in vaulted or covered streets that had doors on each end and served as a city's central marketplace. Street markets are the European and North American equivalents.
Price
A price is the (usually not negative) quantity of payment or compensation expected, required, or given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the commercial exchange, the payment for this product will likely be called its "price". However, if the product is "service", there will be other possible names for this product's name.
Related courses (1)
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