Negotiating Through Agents: A Principal-Focused Agency Model in Representative Negotiations

While the negotiation field has thoroughly explored the agent’s experience in representative negotiations, examinations of the principal’s perspective is notably lacking. To address this under-researched area, we propose the Principal-Focused Agency Model-- a conceptualization of how principals control their agents’ behavior and how those controls affect outcomes. We present four main propositions. First, principals’ trust based in perceptions of their agents’ benevolence negatively relates to how much principals control the outcomes of their negotiations. Second, trust based in perceptions of their agents’ integrity negatively relates to how much principals control the process of their negotiations. Third, trust based in perceptions of their agents’ ability is necessary but not sufficient for principals to relinquish control over either outcomes or processes. Fourth, decisions to maintain control negatively affect outcomes, and this relationship is moderated by integrative potential, such that the more integrative potential present, the more detrimental control is to outcomes.