Can there be a market for cheap-talk information? : an experimental investigation

Antonio Cabrales, Francesco Feri, Piero Gottardi, Miguel A. Meléndez-Jiménez

This paper reports on experiments testing the viability of markets for cheap talk information. We find that the poor quality of the information transmitted leads to a collapse of information markets. The reasons for this are surprising given the previous experimental results on cheap-talk games. Our subjects provide low-quality information even when doing so does not increase their monetary payoff.

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Year of publication:	2018
Authors:	Cabrales, Antonio ; Feri, Francesco ; Gottardi, Piero ; Meléndez-Jiménez, Miguel A.
Publisher:	Munich : CESifo, Center for Economic Studies & Ifo Institute
Subject:	experiment \| cheap talk \| auction \| information acquisition \| information sale \| Experiment \| Auktionstheorie \| Auction theory \| Informationsverhalten \| Information behaviour \| Kommunikation \| Communication \| Informationsversorgung \| Information provision \| Informationsökonomik \| Economics of information \| Asymmetrische Information \| Asymmetric information \| Informationsverbreitung \| Information dissemination \| Spieltheorie \| Game theory \| Informationsmarkt \| Information market \| Auktion \| Auction