It's called NetHaggler and here's how it works:
Add something called Hagglet to your browser toolbar, then find a product you like from a participating store. You can choose from all kinds of retailers. The list includes Best Buy, Wal-Mart, Macy's, Office Depot, REI, and Petco.
Once you find an item you want, click on the Hagglet link then tag the product with the price you're willing to pay. NetHaggler will then monitor the price and send you an alert when the item reaches your tagged price.
To nag: Pick a price you're willing to pay right now. NetHaggler will then interact with the merchant on your behalf and nag for that lower price. You'll receive a response from the merchant either accepting your offer or proposing a counter offer.
Finally, to haggle, you indicate a preferred price, then NetHaggler will try to find a lot of other buyers for that item. Then, it'll haggle with the merchant to get all of you a better deal. After that - it'll send you details about the special bulk bargain it was able to negotiate.
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