Bargaining or haggling is a type of negotiation in which the buyer and seller of a good or service dispute the price which will be paid and the exact nature of the transaction that will take place, and eventually come to an agreement. Bargaining is an alternative pricing strategy to fixed prices. Optimally, if it costs the retailer nothing to engage and allow bargaining, he 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.
Bargaining is also the name chosen for the 3rd stage of the Kübler-Ross model (commonly known as the stages of dying), even though it has nothing to do with price negotiations.
Read more about Bargaining: Contexts Where Bargaining Is Allowed
Other articles related to "bargaining":
... The two person bargaining problem is a problem of understanding how two agents should cooperate when non-cooperation leads to Pareto-inefficient results ... The underlying assumption of bargaining theory is that the resulting solution should be the same solution an impartial arbitrator would recommend ... Solutions to bargaining come in two flavors an axiomatic approach where desired properties of a solution are satisfied and a strategic approach ...
... agency shop only for the costs of performing the union's statutory duties as exclusive bargaining agent." Abood v ... upholds the constitutionality of compulsory "service fees" for collective bargaining services ... nonmembers "service fees" since they often provide support to the bargaining table in a variety of ways both direct and indirect ...