Cognitive Scaffold

Preparing your thinking workspace

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MENTAL MODEL · M11604

Broker

Broker
BusinessHigh supportMarketing
Included
account_tree

Version 1.0.0 · Updated 2026-07-28

CORE DEFINITION

A broker is a person or entity that arranges transactions between a buyer and a seller. This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confused with that of an agent—one who acts on behalf of a principal party in a deal.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

A broker is a person or entity that arranges transactions between a buyer and a seller. This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confused with that of an agent—one who acts on behalf of a principal party in a deal.

anchor

Anchor fast decisions

A broker is a structural hole occupant connecting two non-overlapping groups, bridging heterogeneous information flows. The mechanism is that social capital comes from "position" rather than "tie strength"—strong ties carry redundant information, while bridging weak ties bring non-redundant early information and control benefits. Thus, brokers enjoy information premiums and intermediary power.

MINIMUM ACTION

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Source support: Explicit

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