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Chapter 2: Authority of an Agent: When is Less Better?
This book proceeds from the premise that negotiations through an agent are the norm, not the exception. We can safely assume that in most such cases, the principal expects to get better results through use of an agent or at least to incur lower transaction costs than if he handled the negotiation personally. Principals carry this optimistic expectation, in most cases reasonably so, despite the considerable risks and difficulties discussed elsewhere in this volume.
Nevertheless, every principal faces the challenge of how to instruct the agent so as to maximize the agent's prospects of achieving on behalf of the principal the best possible results in the negotiation. Although there are many ...