Looking into Crystal Balls: A Laboratory Experiment on Reputational Cheap Talk

The authors are grateful to Nageeb Ali, Anthony Kwasnica, Jacopo Perego, Chloe Tergiman, and Bob Winkler as well as seminar audiences at various seminars and conferences for helpful comments and interesting discussions. Luca Ferocino, Antonio Giannino, Giacomo Saibene, Francesca Zambrini, and Giovanni Montanari provided excellent research assistance. A previous version of this work circulated under the title “The Mechanics of Reputational Cheap Talk: An Experiment with Crystal Balls.”