Title. Delegated Bargaining
Abstract. I consider a model of delegated bargaining where an uninformed principal bargains with an opponent and can delegate negotiation to a biased agent who is privately informed about the cost of agreement. Applications include diplomacy and bargaining on behalf of a firm by division managers. I characterize the equilibria that result, showing that there are equilibria with inefficient delay, as well as with immediate agreement. Any equilibrium with delay has an atom of acceptances followed by smooth screening. The probability of delegation decreases over time. As long as the principal is less eager to agree than the agent for the highest costs, the Coase conjecture fails in every equilibrium. Using an agent can benefit the principal, but only in the initial stages of negotiation. If the conflict of interest between the principal and the agent increases, the payoff of the opponent increases.