Cheap talk
![Figure 1: Cheap talk communication setting](/Images/godic/202501/04/Cheap_talk4958.png")
![Figure 2: Message and utilities for conflict of interest b = 1/20, for N=1, 2, and 3](/Images/godic/202501/04/Crawford_Sobel4958.png")
In game theory, cheap talk is communication between players which does not directly affect the payoffs of the game. Providing and receiving information is free. This is in contrast to signaling in which sending certain messages may be costly for the sender depending on the state of the world.