Haggle
Haggling is a form of bargaining in which the seller and buyer of a good or service agree on the market price and the exact terms of the deal .
General
Haggling is common around the world, although it is less common in Europe and the United States . In Europe and the USA, haggling is mostly limited to market events such as the weekly market or flea market . Not every purchase is considered suitable for bargaining. In some areas, with the phrase "Fixed Price" (is a fixed price ) expressed that haggling is not desired.
In developing and emerging countries , bargaining is common at market events ( bazaars ) or in shops . The seller names a clearly excessive starting price (" moon price "), to which the buyer reacts with half of this price as a purchase offer. The seller then offers a higher price until both have agreed on a purchase price . Sellers tend to base the starting price on the first impression of the buyer.
Theories
Behavior theory
The personality theory of haggling emphasizes that the type of haggle influences the process and its outcome. In scientific work different types including as stubborn are Warrior (Warrior) and resilient Shopkeeper (Kramer), respectively.
Game theory
Haggling games are situations in which two or more players have to agree on the distribution of an item or amount of money. Each player prefers an agreement to an abstention in these games, but at the same time each player wants to reach the optimal agreement for his interests. Examples of such games would be disputes between trade unions and company owners about wages, the dispute between two communities over a defined piece of land or the conditions under which two countries can carry out nuclear disarmament .
The analysis of such problems includes the search for components that are crucial for the players involved. The target can also be broken down into sub-targets so that step-by-step bargaining can be investigated.
In the classic haggling problem, the result is an agreement between all parties involved or the status quo ante . The observation of the decision-making of individual participants is not sufficient here to enable a prediction of the result. The classical theory of haggling, however, assumes that each participant follows the model of rational choice when choosing between options. In particular, it is assumed that each player's preference can be expressed by a von Neumann-Morgenstern utility function .
John Nash (1950) defines a classic haggling problem as bundled assignments of benefits, one of which corresponds to an agreement, another to a failure of the negotiation.
A two player haggling problem is defined as pair (F, d), where F is the group of possible bundled assignments of utility and d is the point of mismatch.
It is common practice to follow Nash's suggestion for defining a specific solution by specifying the properties that the solution should satisfy. Some of the most commonly used are efficiency, symmetry, independence from irrelevant alternatives, scalar invariance, etc. Nash's haggling solution is the one that maximizes the product of the agent's utility.
Integrative theory
This theory emphasizes the phased approach to problem solving. A distinction is made between three steps - diagnostic phase, formulation phase and implementation phase.
Procedural theory
This theory isolates distinctive elements of the haggling timing to better understand the complexity of the process. Some key terms are:
- Limits of the possible outcome
- Critical risk
- Security point
- Toughness dilemma
literature
- From Abercron: Bargaining & Bargaining . Bargain Bargains in the Bazaar, Books on Demand 2009, ISBN 978-3-837-03654-1
Web links
Individual evidence