To clarify the question, haggling isn't really out of favor in all of "the West" - it's still the way business is done across the Caribbean and into Latin America.
So a better question might be why haggling isn't widespread in Europe and North America.
I can't drop a specific date as to when, but I do know that in the book Comanche Empire, Pekka Hamalainen goes through a fanatstic amount of detail involving the engine of commerce and trade that was integral to the West/Southwest between the initial settlement of the Spanish, the Texans, and the Euro-Americans expanding west.
It isn't too much, and if this isn't the truly correct way to respond, then I do apologize - but it's a start.
Brilliant read, and interesting insight into the inner-workings of the western frontier.
I saw that by the end of everything, the haggle/barter system had pretty much been absolved.