Changes

==Description==

==Description==

'''Bargaining''' or haggling 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. Bargaining is an alternative pricing [[strategy]] to fixed prices. Optimally, if it costs the retailer nothing to [[engage]] and allow bargaining, he/she can divine the buyer's willingness to spend. It allows for capturing more consumer surplus as it allows price discrimination, a [[process]] whereby a seller can charge a higher price to one buyer who is more [[eager]] (by being richer or more [[desperate]]). Haggling has largely disappeared in parts of the world where the cost to haggle exceeds the gain to retailers for most common retail items. However, for expensive goods sold to uninformed buyers such as automobiles, bargaining can remain commonplace. ''Dickering'' refers to the same process, albeit with a slight [[negative]] (petty) connotation.[http://en.wikipedia.org/wiki/Bargaining]

'''Bargaining''' or haggling 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. Bargaining is an alternative pricing [[strategy]] to fixed prices. Optimally, if it costs the retailer nothing to [[engage]] and allow bargaining, he/she can divine the buyer's willingness to spend. It allows for capturing more consumer surplus as it allows price discrimination, a [[process]] whereby a seller can charge a higher price to one buyer who is more [[eager]] (by being richer or more [[desperate]]). Haggling has largely disappeared in parts of the world where the cost to haggle exceeds the gain to retailers for most common retail items. However, for expensive goods sold to uninformed buyers such as automobiles, bargaining can remain commonplace. ''Dickering'' refers to the same process, albeit with a slight [[negative]] (petty) connotation.[http://en.wikipedia.org/wiki/Bargaining]

==See also==

==See also==

*'''''[[Negotiation]]'''''

*'''''[[Negotiation]]'''''

[[Category: Economics]]

[[Category: Economics]]