We analyze a cheap-talk model in which an informed sender and an uninformed receiver engage in a finite-period communication before the receiver chooses a project. During the communication phase, the sender sends a message in each period, and the receiver then voluntarily pays money for the...

This paper analyzes strategic interactions between cheap talk and lie detection and studies the optimal equilibrium for costly lie detection and its effectiveness. An informed sender wants to persuade an uninformed receiver to take high actions, but the receiver wants to match the action with...