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Checking Cheap Talk
2019
We study a sender-receiver game. The sender observes the state and costlessly transmits a message to the receiver, who selects one component of the state to check and then chooses a binary action. The receiver's preferred action depends on the state. The sender has a state-independent preference for one action over the other. Nevertheless, communication can strictly benefit both players. We characterize the symmetric equilibria. In each one, the sender tells the receiver which components of the
doi:10.17863/cam.43918
fatcat:pslnkdi7nbgrtgbnjmpd62bwdi