Flea Market Behavior

So you're walking down a narrow alley in the Arab Quarter of the Old City in Jerusalem and you spy a splendid pair of shoes displayed in a messy shop. You hesitate for a moment near the entrance, not sure whether to invest time in inspecting and purchasing, or to simply move on. Someone else noticed your hesitation right away--namely, the shopkeeper, who is eagerly escorting you into his shop with hyper remarks about giving you a "good price." You realize it's too late, so you pick up the shoes and take a look.

You squint down at the shoes, trying to look like a professional. Hmm...some total no-name brand called SpikoPerformanz, squeaky plastic bottoms, cheap suede, and probably one too many places are glued where they should have been stitched. Your thoughts are broken by the shopkeeper, who yet unsure of which of his languages to employ, tells you in Hebrew that the shoes are an excellent choice. "Which size, I find for you!" he says walking towards the back where a pile of anonymous shoeboxes lie. You tell him the price in Hebrew, after which he begins wading through his merchandise. Coming up empty handed, he sheepishly says, "I go to find this size." Given an extra moment to look at the shoes, you think to yourself, not bad looking, they would probably last me a year or two. Would be worth it if I could get them for a good price. The shopkeeper returns with your shoes and a shady-looking friend. You try on the shoes, still trying to act like you're just "mildly" interested. After a few practice steps, you determine they are decent shoes and start to bargain. Hmm, I could probably get these for $10 at K-Mart, so I'll start with $7 and see how it goes.

"How much?" you ask the shopekeeper, to which he replies, "$35." You shoot him a glance that says, how dare you, and tell him how cheap the shoes are before telling him you'll give him $5. In a flurry of drama, he puts the shoes back in the box and informs you that is not fair. You shrug your shoulders and begin walking out, before which he yells, "Okay! $20." You turn around just long enough to clarify that his offer is still a joke. Before you turn the corner, he says, "Okay for you friend, I will do a special price. $15." You turn around and nonchalontly offer $7. He knows the party is over, and after three back-and-forths, you settle for $10.

As an omniscient narrator, I can tell you that the shopkeeper bought the shoes for $3 and would have sold them for $7 to someone who spoke his language and bargained hard. You walked away thinking you saved $25, he walked away knowing he made $3 and, frankly, had a pleasant time doing it. Everybody wins.

Imagine you went into the same shop the very next day and pulled out $10 and asked for a pair of shoes. This time, the shopkeeper sniffs the air, and informs you of some nonexistent faux pas. You try and explain to him you bought these shoes (the ones you are wearing) for $10 and would simply like another pair. "I know the price, let's just skip the drama, okay?" you say. He says no and offers you $15 before you finally turn the corner.

As an omniscient narrator, I can tell you I fail to understand this situation. Some theories are: his ego was not boosted enough by a simple one-price sale; his friends made fun of him for not being able to exact more money the last time and feels dishonored; he sold a pair of those shoes for $15 to another American-Israeli (or another AmI bought a pair from another vendor on the same street); or (least likely) the price of shoes went up 50%.

Some questions are: is there a market price in a flea-market/haggle environment? Does the shopkeeper derive enjoyment/ego boost from using his superior haggling skills? Are tourists quasi-required to pay out more money for items? Should the shopkeeper feel good if he rips people off (imagine a $35 sale) and gloat? Is all this just business? Why do some people feel reticent to haggle?

How does this Arab environment compare to flea markets in other places? Europe, USA, Asia, Latin America?