Simple Communication (opens in new tab)

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. Even though the expert and the decision-maker share the same payoffs, the use of simple language introduces strategic frictions. Under quadratic-loss utility, any equilibrium score must be linear in the state or a coarsening of a ...