Agent

Published Dec 23, 2022

Definition of Agent

An agent is defined as a person or entity that acts on behalf of another person or entity (i.e., the principal). That means it is a third party authorized to make decisions and take actions on behalf of the principal. Agents can be individuals, companies, or even artificial intelligence (AI).

Example

To illustrate this, let’s look at an example of a real estate agent. A real estate agent is a person who is authorized to act on behalf of a homeowner to sell their property. That means the agent is responsible for finding potential buyers, negotiating the sale price, and closing the deal. The homeowner, in turn, does not have to be involved in the process and can rely on the agent to do the work for them.

Why Agents Matter

Agents are an essential part of the modern economy. They are often used to facilitate transactions between two parties, such as in the example above. In addition, agents can also be used to represent a company in negotiations with other companies or governments. This can be especially useful when the company does not have the resources or expertise to handle the negotiations itself. Finally, agents can also be used to manage investments, such as stocks and bonds, on behalf of their clients.