The craft market runs along a covered alley just off the Plaza de Armas, a couple of dozen stalls deep. What is worth buying is the wool: alpaca and llama jumpers, hats, gloves and socks, most of it warm enough to be genuinely useful at four in the morning on the way to the geysers, which is when half of it gets bought. Prices are reasonable by Chilean standards and rise the closer you get to Caracoles.
Beyond the knitwear there are ceramic replicas of Atacameño pottery, lapis lazuli — Chile is one of the few places it is mined — carved cactus wood, and a great deal of mass-produced material that has come over the border from Bolivia and Peru. Stallholders will generally tell you which is which if you ask directly.
Haggling is mild here and not really expected; a polite question about a better price for two items is as far as it goes. Most stalls take cash only, and the ATMs in town run dry regularly.