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Sellers benefit on average from revealing information about their goods to buyers, but the incentive to exaggerate undermines the credibility of seller statements. When multiple goods are being auctioned, we show that ordinal cheap talk, which reveals a complete or partial ordering of the...
Persistent link: https://www.econbiz.de/10001769030
into categories by value, can be credible even when interests are too opposed to support communication along any single …, thereby precluding any possibility of exaggeration. The communication gains from ordinal cheap talk can be substantial with …
Persistent link: https://www.econbiz.de/10001769617
Persistent link: https://www.econbiz.de/10001685882