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  1. Not so cheap talk: costly and discrete communication. [REVIEW]Johanna Hertel & John Smith - 2013 - Theory and Decision 75 (2):267-291.
    We model an interaction between an informed sender and an uninformed receiver. As in the classic cheap talk setup, the informed player sends a message to an uninformed receiver who is to take an action which affects the payoffs of both players. However, in our model, the sender can communicate only through the use of discrete messages which are ordered by the cost incurred by the sender. We characterize the resulting equilibria without refining out-of-equilibrium beliefs. Subsequently, we apply an adapted (...)
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