I’ve always found bargaining to be interesting from both a behavioral economics and a cultural perspective. Chris Blattman had a great post on bargaining fractions a couple years back, specifically focusing on taxi fares. To summarize, in many countries there’s no taxi meter, and it’s appropriate (and often necessary) to negotiate a rate. Chris has found that the final negotiated price in a given country is usually a pretty consistent fraction of the driver’s initial offer price (assuming you’re a decent negotiator). But what’s interesting is that this fraction varies significantly between countries. Chris then talks about a few negotiation strategies that will help a traveler get down to a given country’s fraction without paying too much of a “foreigner
Tuk Tuk Rides
