In Standard Game Theory, Cheap Talk

question 24

Multiple Choice

In standard game theory, cheap talk:

• A) will fool all the players into cooperating.
• B) doesn't affect the outcome of the game.
• C) benefits only trustworthy people.
• D) changes the payoffs.

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Definitions:

Shale Rock

A fine-grained sedimentary rock composed of clay, mineral flakes, and organic matter, known for its ability to store oil and gas.

Mistake Of Value

An error regarding the understanding or assessment of the value of an item or deal, potentially affecting a contract's validity.

Material Facts

Important information that could influence a decision-making process, particularly in legal and financial contexts.

Justifiably Relied

A legal principle where a party has a right to depend on the information or commitment of another, expecting it to be true or honored.