Can there be a Market for Cheap-Talk Information? An Experimental Investigation

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 : Center for Economic Studies and ifo Institute (CESifo)
Subject:	experiment \| cheap talk \| auction \| information acquisition \| information sale

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Series:	CESifo Working Paper ; 6975
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1019418907 [GVK] hdl:10419/180237 [Handle] RePec:ces:ceswps:_6975 [RePEc]
Classification:	D83 - Search, Learning, Information and Knowledge ; C72 - Noncooperative Games ; G14 - Information and Market Efficiency; Event Studies
Source:	EconStor

Persistent link: https://www.econbiz.de/10011872032