Mandated Negotiating Agents
Using agents to make commitments more credible
Mandated negotiating agents are agents who are authorized to make commitments on behalf of a principal. By using mandated negotiating agents, individuals can make commitments more credible and reduce the risk of non-compliance.
- Use mandated negotiating agents to make commitments more credible
- Reduce the risk of non-compliance through mandated negotiating agents
- Use mandated negotiating agents in situations where individual commitment is difficult to achieve
- Authorize an agentAuthorize an agent to make commitments on behalf of a principal. This will help make commitments more credible and reduce the risk of non-compliance.Pro tipUse a reputable and trustworthy agent.WarningBe cautious not to create a situation where the agent has a conflict of interest.
Labor unions
Labor unions are a classic example of mandated negotiating agents, where agents are authorized to make commitments on behalf of workers.
OutcomeBy using mandated negotiating agents, workers can make commitments more credible and reduce the risk of non-compliance, leading to a higher likelihood of success.
Failing to authorize a reputable agent
If the agent is not reputable or trustworthy, it may not be effective in making commitments more credible and reducing the risk of non-compliance.
The concept of mandated negotiating agents originated in the field of economics, where it was used to analyze the behavior of firms in oligopolistic markets.
Source · BOOK
The Art of Strategy: A Game Theorist's Guide to Success in Business and Life