economics

If you've traveled in a developing country, you've probably been in a situation where you need to negotiate a price. Actually, you've probably been in this situation hundreds of times. Whether it's a taxi ride or a souvenir, in many places in the world it is perfectly normal to negotiate for a price. Many tourists and travelers have trouble with this concept. Depending on where you are, it might only cost a few bucks at the most. But to that local shopkeeper or taxi driver, it's a lot of money. Why not just give them that little extra that they are asking for? What's the harm? They need the money, and they are supporting their families, right?