Cheap talk
A)has no bearing on games; only "real" actions matter.
B)can transmit information in certain equilibria,but only if players' interests are sufficiently distinct.
C)can transmit information in certain equilibria,but only if players' incentives are sufficiently aligned.
D)always leads to the best equilibrium for the "talker".

Question

Quizplus · Accepted Answer

Cheap talk can transmit information in certain equilibria when players' incentives are sufficiently aligned, allowing them to credibly share information despite the non-binding nature of the communication.

Cheap Talk