In this paper, we extend the cheap talk model of Crawford and Sobel (1982) to a multidimensional state space. We provide a characterization of informative equilibria. Most importantly, we prove for a generic family of distribution functions, that no information transmission is feasible when the...

This paper offers a model to study the trade-off between the efficiency enhancements of information exchanges and the risk of information leakage in organizations. Information exchanges can be efficient since, in the absence of legal enforcement, the voluntary disclosure of personal information...