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:
“We few, we happy few, we band of brothers.
For he today that sheds his blood with me
Shall be my brother; be he ne’er so vile,
This day shall gentle his condition.
And gentlemen in England now abed
Shall think themselves accursed they were not here,
And hold their manhoods cheap whiles any speaks
That fought with us upon Saint Crispin’s day.”
—William Shakespeare (1564–1616)
“War talk by men who have been in a war is always interesting; whereas moon talk by a poet who has not been in the moon is likely to be dull.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)