roystgnr comments on Principals, agents, negotiation, and precommitments - Less Wrong
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"The Strategy of Conflict" by Thomas C. Schelling. In Part II, "A Reorientation of Game Theory", Chapter 5, "Enforcement, Communication, and Strategic Moves", a half dozen subsections in is "Delegation". Coincidentally enough it's a section I read last night; I'm still only halfway through the book, so it was easy enough to look up the reference sitting right next to me. :-)
And it's probably what gwillen is looking for. Until I read the sentence starting with "Is there any literature", this post sounded like it was going to be the first in a series of "Cliffs' Notes" for Schelling.
Hah, that is a perfect citation, thanks.