Long Cheap Talk

Authors


Abstract

With cheap talk, more can be achieved by long conversations than by a single message—even when one side is strictly better informed than the other. (“Cheap talk” means plain conversation—unmediated, nonbinding, and payoff-irrelevant.) This work characterizes the equilibrium payoffs for all two-person games in which one side is better informed than the other and cheap talk is permitted.

Ancillary