2025/09/11 by Bizzotto, Jacopo, Hancart, Nathan
#FOS: Economics and business #Theoretical Economics (econ.TH)
paper · doi:10.48550/arxiv.2509.09621
We study multidimensional cheap talk with simple language and aligned preferences. An expert communicates with a decision-maker using a score that aggregates a multidimensional state into a one-dimensional message. Expert and decision-maker share the same quadratic-loss utility function. We show that the use of simple language introduces strategic considerations. First, equilibrium payoffs may be lower than those achievable under commitment to a score. Additionally, any equilibrium score must be either linear or discrete. Finally, for normally distributed states, the set of equilibrium linear scores includes only the ex-ante best and worst linear scores.