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In: Economics

Is there a time cost associated with haggling? A person's time becomes more valuable due to...

Is there a time cost associated with haggling? A person's time becomes more valuable due to the higher income earned, is there less haggling over price?

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Expert Solution

HAGGLING

  • Persistant bargain or dispute over a cost of some thing
  • a debate over a cost of a particular good or service between a buyer and seller
  • bargaining over a tarnsaction
  • during the process a customer either has a choice to accept the price or bargain over the price for a mutual agreement for the price
  • in other word called as the negitiation cost
  • not all choose to negotiate when given an opportunity
  • it is due to individuals of different behaviour
  • this proces helps ur estimate the consumers benefit ane the firms profit
  • also helps us estimate the optimal choice of pricing on the value of consumer bargaining cost

A persons time becomes more valuable due to the higher income earned, in this there is less haggling over prices to a certain extent. Irrespective of the increase of income, this characteristic depends on individual and their behaviour. certain parameters like willingness to pay,relative bargaining power, bargaining cost, real price of the commodity, at times even the subtituion cost all affect the haggling.it is well known that bargainer always reject low offers, once the inconme rises they are more rational in their opporach. they have a tendency to offer more ans ask for significantly more.?their demand increases iwth age and experience.also they care less about the monetary gains and more about the potential harm to their reputation

Rahul Sunny answered 2 years ago
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