Decision makers are often thought to benefit from obtaining information from several experts. This paper analyzes a cheap-talk game in which the decision maker cross-checks the information received from two biased experts. In a multidimensional state space I construct a fully revealing equilibrium in which the receiver trusts messages that appear to be non self-serving. When she receives two messages that both appear to be self-serving, the receiver chooses an action that makes each sender equally well off as the message sent by the opposing expert. The resulting equilibrium has properties that make it a simple and plausible solution for full revelation in multi-dimensional cheap-talk games.

Cheap-talk with two senders

Fri 21 Aug 2015 3:30pm5:00pm


Room 103, Colin Clark Building (#39)