Principal Agent Relationships in a Negotiation

The video tutorial explains the principal-agent relationship, highlighting the advantages and disadvantages of using an agent in negotiations. It discusses how agents can provide expertise, networks, and emotional detachment, which can be beneficial. However, it also addresses potential drawbacks such as compensation, misaligned incentives, and communication issues. The tutorial concludes with strategies for effectively using an agent, including finding the right agent, establishing authority, and leveraging their expertise and networks.

In what ways can communication distortions occur in a principal-agent relationship?

What tactics can a principal use to effectively employ an agent?

What should a principal consider when establishing the authority of an agent?