Second, an "agent" may be brought in as a principal in his own right, with an incentive structure of his own that differs from his principal's. This device is involved in automobile insurance; the private citizen, in settling out of court, cannot threaten suit as effectively as the insurance company since the latter is more conspicuously obliged to carry out such threats to maintain its own reputation for subsequent accidents.

Thomas C. Schelling, The Strategy of Conflict, loc. 80