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.
The personality theory in bargaining emphasizes that the type
of personalities determine the bargaining process and its outcome.
Retailers can choose to sell at posted prices or allow bargaining:
selling at a public posted price commits the
retailer not to exploit buyers once they enter
the retail store, making the store more attractive to potential
customers, while a bargaining strategy has
the advantage that it allows the retailer to price discriminate
between different types of customer. E.G. Moroccan or
Tourist - prices.