Long Cheap Talk
Robert J. Aumann and 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, non-binding, 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.
Keywords: cheap talk, communication, long conversation, incomplete
information, game theory, signalling, joint lottery, dimartingale, di-span
Econometrica 71 (2003), 6, 1619-1660