We stayed in an area called Night Bazaar in Chiang Mai where there were plenty of markets and restaurants. We were able to do the usual bartering with the locals to get cheap goods. They did however test you by initially asking for a pretty high price. When you show them you know what you are doing they come down to a more modest price.
(In other words, walk off and they begin shouting lower prices at you - if not you know the next stall will be selling exactly the same stuff.. So try again!)
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