Working Paper
Can there be a Market for Cheap-Talk Information? An Experimental Investigation
Antonio Cabrales, Francesco Feri, Piero Gottardi, Miguel A. Meléndez-Jiménez
CESifo, Munich, 2018
CESifo Working Paper No. 6975
CESifo, Munich, 2018
CESifo Working Paper No. 6975
![](https://cesifo.org/DocImg/cesifo1_wp6975.jpg?c=1689237053)
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.
CESifo Category
Industrial Organisation
Behavioural Economics
Industrial Organisation
Behavioural Economics
JEL Classification: D830, C720, G140