In a game of Cheap Talk, the sender knows the state 0 which is uniformly distributed on [0,1], and communicates a message to the receiver who does not know the state. The receiver has utility UR(y; 6') = |y 0| and the sender has utility U3(y;6) = |y (6 + b)|. The receiver may choose any action, y e [0; 1] and suppose I) = %. (a) Construct a two partition equilibrium. Find the two partitions, and the receiver's two actions. (b) Calculate the receiver's expected utility in this two partition equilibrium and show that it is greater than the utility in the babbling equilibrium. (c) What are the partitions in the Pareto dominant equilibrium? (d) For what values of b is the only equilibrium babbling