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 hate cheap pictures. I hate pictures that make people look like they’re not worth much, just to prove a photographer’s point. I hate when they take a picture of someone pickin’ their nose or yawning. It’s so cheap. A lot of it is a big ego trip. You use people as props instead of as people.”
—Jill Freedman (b. 1939)
“Let those talk of poverty and hard times who will in the towns and cities; cannot the emigrant who can pay his fare to New York or Boston pay five dollars more to get here ... and be as rich as he pleases, where land virtually costs nothing, and houses only the labor of building, and he may begin life as Adam did? If he will still remember the distinction of poor and rich, let him bespeak him a narrower house forthwith.”
—Henry David Thoreau (1817–1862)