I’ve been lecturing (technically tutoring) someone recently on economy for economy classes. So far it’s been easy. But we often get sucked into the topic of price haggling. It always goes the same.
She asks something like “why does what people say affect a price? You either value something to the extent you value it or you don’t. It seems dishonest.”
Usually my response to that is to first mention how, if all prices were fixed, money wouldn’t go anywhere. If everyone just sold pizzas, and everyone sold them at the same price, everyone would live and die with the same amount of value in their possession. I also compare it to a captcha and say it’s like tipping them for their human-to-human time.
That’s a good point I think. Anyone in our same recurring conversation should start there. I bring up the small details and allow the ideas to converge. Especially the ones she knows.
However, I must admit, that’s where my ability to explain it ends.
She then asks something like “how do you haggle then? What kind of talking is considered haggling and then at what point does it just become price bickering?” And in my mind, as I try to define it for her, I think to myself “forgive her, she’s on the spectrum.”
I’m not like her. I like to price haggle freely and think price haggling should be protected by law in the same way religion is protected by Freedom of Religion laws. If someone comes into a pharmacy and wants to haggle, in my perfect world, it would be enforced by the authorities. Perhaps you can tell me in your answer to this if you think this is a good idea (please).
How immersed are you in the practice? Immersed enough you’ve taken a long time doing it before (how long) or do it frequently? A lot of the people here have passionate views on the economy; how do you square the practice of price haggling with your views? Is it considered “good” in your viewpoint?


I haggle. Sadly, it’s a form of promising to use your market power (no matter whether tiny or big) in a way favourable to the partner. Markets are irrational things and market power is a real thing - you can make markets work nicer for others, usually requesting something nice for yourself.
E.g. “if you can sell me X for 4 € / km, I promise that I buy 500 km / month, otherwise thank you, but I only need a sample”. The buyer makes a conditional promise to favour the seller if the seller can maintain the requested price level.
Another example: “I agree to buy this sofa at once and pay in cash, but please drop the price to 100 €”. The buyer offers to not waste the seller’s time (time is valuable) and to avoid any contact with tax officials, in return for a more favourable price.
As for whether it’s good or bad - I think that over long timescales, it’s bad. If there exists a market, one should strive for it to be transparent and equal, free of covert influence. Haggling is a form of applying such influence. So if I would be designing a trading system, I would try to go against what I personally do. I would try to avoid the need for haggling and discourage it.