We study the use of and response to cheap talk by firms and their consumers, focusing on unverifiable promises of charitable donations on eBay. For transactions during March 2005 – May 2006, cheap talk listings have lower sales probabilities but sell at higher prices when they are successful....

We study the use of and response to cheap talk by firms and their consumers, focusing on unverifiable promises of charitable donations on eBay. For transactions during March 2005 - May 2006, cheap talk listings have lower sales probabilities but sell at higher prices when they are successful....

We present a model of charity auctions in which all bidders receive a benefit from the host charity raising revenue. Bidding behavior reflects two conflicting incentives: Bids may be inflated because of private benefits from charitable giving, or bids could be depressed by the public goods...