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.
Read more about Cheap Talk: Application, Biological Applications
Famous quotes containing the words cheap and/or talk:
“I have no more cheap morals to draw from all this death.”
—Judith Rascoe, U.S. screenwriter, Robert Stone (b. 1939)
“Your need to talk does not create in me a need to listen.”
—Mason Cooley (b. 1927)