Cheap Talk and Burned Money

David Austen-Smith; Jeffrey S. Banks

doi:10.1006/jeth.1999.2591

Cheap Talk and Burned Money

David Austen-Smith^*, Jeffrey S. Banks

^*Corresponding author for this work

Managerial Economics, Decision Sciences and Operations

Research output: Contribution to journal › Article › peer-review

68 Scopus citations

Abstract

We augment the standard Crawford-Sobel (1982, Econometrica50, 1431-1451) model of cheap talk communication by allowing the informed party to use both costless and costly messages. The issues on which we focus are the consequences for cheap talk signaling of the option to burn money and the circumstances under which both cheap talk and burned money are used to signal information. Journal of Economic Literature Classification Numbers: C7, D8.

Original language	English (US)
Pages (from-to)	1-16
Number of pages	16
Journal	Journal of Economic Theory
Volume	91
Issue number	1
DOIs	https://doi.org/10.1006/jeth.1999.2591
State	Published - Mar 2000

ASJC Scopus subject areas

Economics and Econometrics

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10.1006/jeth.1999.2591

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author = "David Austen-Smith and Banks, {Jeffrey S.}",

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Cheap Talk and Burned Money

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