Bargaining (Reading Comprehension)

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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 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 retailers 
nothing to engage in and allow bargaining, they can deduce 
buyers' willingness to spend. 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). 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 such as automobiles sold to 
uninformed buyers, bargaining can remain commonplace.
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Social_science&sa=D&source=editors&ust=1630437389818000&usg=AOvVaw1pOXfpzM-5iWSuBCEE_0Wr
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Negotiation&sa=D&source=editors&ust=1630437389818000&usg=AOvVaw2K4mEmSZnM1IOrlvmdyMw9
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Buyer&sa=D&source=editors&ust=1630437389818000&usg=AOvVaw0f-UVucHYyi4eiCdHD1AGz
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Seller&sa=D&source=editors&ust=1630437389818000&usg=AOvVaw1TSshO_cqCp237jttQ41Nh
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Goods_and_services&sa=D&source=editors&ust=1630437389818000&usg=AOvVaw2954TVi8JMOK7EWQJSThPv
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Goods_and_services&sa=D&source=editors&ust=1630437389818000&usg=AOvVaw2954TVi8JMOK7EWQJSThPv
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Price&sa=D&source=editors&ust=1630437389818000&usg=AOvVaw06Pelkxk0N5Db7YEuVFAsj
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Financial_transaction&sa=D&source=editors&ust=1630437389818000&usg=AOvVaw2IZU_15aBV0wSH-Auw-vVx
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Pricing_strategy&sa=D&source=editors&ust=1630437389818000&usg=AOvVaw1DBQ_hnzEgdRSQNQkupIlu
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Pricing_strategy&sa=D&source=editors&ust=1630437389819000&usg=AOvVaw0uiF9GijqZ_eSRKED3kO7c
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Fixed_price&sa=D&source=editors&ust=1630437389819000&usg=AOvVaw2jipDp_TFB9fI8c5aP34J9
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Willingness_to_pay&sa=D&source=editors&ust=1630437389819000&usg=AOvVaw3ic3XSe6tcRnZNQBOr8Deq
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Consumer_surplus&sa=D&source=editors&ust=1630437389819000&usg=AOvVaw2kTXRyWFr3QrkWpDRXlHyZ
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Price_discrimination&sa=D&source=editors&ust=1630437389819000&usg=AOvVaw1RUKTvX7PG0F1BN0LAuokY
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Automobile&sa=D&source=editors&ust=1630437389819000&usg=AOvVaw3PYs9zjeSXtc5KP6ry2uEj
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.
In Indonesia and elsewhere in Asia, locals haggle for goods and services everywhere 
from street markets to hotels. Even children learn to haggle from a young age. 
Participating in that tradition can make foreigners feel accepted. On the other hand, 
in Thailand, haggling seems to be softer than the other countries due to Thai 
culture, in which people tend to be humble and avoiding an argument. However, 
haggling for food items is strongly discouraged in Southeast Asia and is considered 
an insult, because food is seen as a common necessity that is not to be treated as 
a tradable good.
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Indonesia&sa=D&source=editors&ust=1630437389901000&usg=AOvVaw0XYjLTbRdbkbCFxVSebmnw
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Thailand&sa=D&source=editors&ust=1630437389901000&usg=AOvVaw2J9-YyyfW1Y2dpVuFsLs5_
In almost all large complex business negotiations, a certain amount of bargaining takes 
place. One simplified 'western' way to decide when it's time to bargain is to break 
negotiation into two stages: creating value and claiming value. 
Claiming value is another phrase for bargaining. Many cultures take offense when they 
perceive the other side as having started bargaining too soon. This offense is usually as 
a result of their wanting to first create value for longer before they bargain together. The 
Chinese culture, by contrast, places a much higher value on taking time to build a 
business relationship before starting to create value or bargain. Not understanding when 
to start bargaining has ruined many an otherwise positive business negotiation.
In areas where bargaining at the retail level is common, the option to bargain often 
depends on the presence of the store's owner. A chain store managed by clerks is more 
likely to use fixed pricing than an independent store managed by an owner or one of the 
owner's trusted employees.
The store's ambiance may also be used 
to signal whether or not bargaining is 
appropriate. For instance, a comfortable 
and air-conditioned store with posted 
prices usually does not allow bargaining, 
but a stall in a bazaar or marketplace 
may. Supermarkets and other chain 
stores almost never allow bargaining. 
However, the importance of ambiance 
may depend on the cultural commitment 
to bargaining. In Israel, prices on 
day-to-day items (clothing, toiletries) may 
be negotiable even in a Western-style 
store manned by a clerk.
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Bazaar&sa=D&source=editors&ust=1630437390176000&usg=AOvVaw33jyyqzVGOG9kHtE2cGUXv
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Marketplace&sa=D&source=editors&ust=1630437390176000&usg=AOvVaw2_qAy74yi_UHsP6FJ0ZnLd
https://www.google.com/url?q=https://en.wikipedia.org/wiki/Supermarket&sa=D&source=editors&ust=1630437390176000&usg=AOvVaw0sO4er3KkAd-d18VjfyaAA
QUESTIONS
1) What is bargaining? 
2) Why is bargaining no so common anymore? 
3) How common is bargaining in North America? 
4) Why can’t you bargain for food in Southeast 
Asia?
5) Why can bargaining among cultures be difficult? 
6) How do you know if bargaining is appropriate?