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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....
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In many cases, buyers are not informed about their valuations and rely on experts, who are informed but biased for …. The ability to communicate as the auction proceeds allows for more informative communication and gives advisors the …
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