Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Nov, 2003, Volume 71, Issue 6

Long Cheap Talk

https://doi.org/10.1111/1468-0262.00465
p. 1619-1660

Robert J. Aumann, Sergiu Hart

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.


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