Cheap Talk (Paperback)

High Quality Content by WIKIPEDIA articles In game theory, cheap talk is communication between players which does not directly affect the payoffs of the game. This is in contrast to signaling in which sending certain messages may be costly for the sender depending on the state of the world. The classic example is of an expert (say, ecological) trying to explain the state of the world to an uninformed decision maker (say, politician voting on a deforestation bill). The decision maker, after hearing the report from the expert, must then make a decision which affects the payoffs of both players.