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Checking Cheap Talk

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  • Ian Ball
  • Xin Gao

Abstract

We consider a sender--receiver game in which the receiver's action is binary and the sender's preferences are state-independent. The state is multidimensional. The receiver can select one dimension of the state to check (i.e., observe) before choosing his action. We identify a class of influential equilibria in which the sender's message reveals which components of the state are highest, and the receiver selects one of these components to check. The sender can benefit from communication if and only if she prefers one of these equilibria to the no-communication outcome. Similar equilibria exist when the receiver can check multiple dimensions.

Suggested Citation

  • Ian Ball & Xin Gao, 2025. "Checking Cheap Talk," Papers 2501.09875, arXiv.org, revised May 2025.
  • Handle: RePEc:arx:papers:2501.09875
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    References listed on IDEAS

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    1. Bijkerk, Suzanne H. & Karamychev, Vladimir & Swank, Otto H., 2018. "When words are not enough," Journal of Economic Behavior & Organization, Elsevier, vol. 149(C), pages 294-314.
    2. , & ,, 2008. "Multi-sender cheap talk with restricted state spaces," Theoretical Economics, Econometric Society, vol. 3(1), March.
    3. Paul R. Milgrom, 1981. "Good News and Bad News: Representation Theorems and Applications," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 380-391, Autumn.
    4. , & ,, 2006. "A study in the pragmatics of persuasion: a game theoretical approach," Theoretical Economics, Econometric Society, vol. 1(4), pages 395-410, December.
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