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:
“Whatever universe a professor believes in must at any rate be a universe that lends itself to lengthy discourse. A universe definable in two sentences is something for which the professorial intellect has no use. No faith in anything of that cheap kind!”
—William James (1842–1910)
“I can’t talk about Hollywood. It was a horror to me when I was there and it’s a horror to look back on. I can’t imagine how I did it. When I got away from it I couldn’t even refer to the place by name. “Out there,” I called it.”
—Dorothy Parker (1893–1967)