In competitive bidding, the idea that since some buyers will underestimate the value of an item and others will overestimate it, the high bidder will usually be one of the people that overestimated. Therefore there is a good chance that the 'winner' paid too much for the item.
Related information about winner's curse:
- Winner's curse - Wikipedia, the free encyclopedia
The winner's curse is a phenomenon akin to a Pyrrhic victory that occurs in common value auctions with incomplete information. In short, the winner's curse says ...
- Winner's Curse Definition | Investopedia
A tendency for the winning bid in an auction to exceed the intrinsic value of the item purchased. Because of incomplete information, emotions or any other ...
- The Winner's Curse: Paradoxes and Anomalies of Economic Life ...
An economic anomaly occurs when there is a difference between how standard economic theory predicts people should behave and how people actually ...
- Game Theory .net - Winner's Curse Applet
Simulation of Winner's Curse. Part of Mike Shor's lecture notes for a course in Game Theory.
- The Bidding Game - The Winner's Curse
The Winner's Curse. In 1971 three employees of the petroleum giant ARCO ( Edward Capen, Robert Clapp, and William Campbell) noticed something odd.
- The Winner's Curse
Winners in competitive bidding are losers in that they frequently pay too high a price. This phenomenon has recently been noted in genetic association studies of ...
- What is winner's curse? definition and meaning
Definition of winner's curse: In competitive bidding, the idea that since some buyers will underestimate the value of an item and others will overestimate it, the ...
- Anomalies: The Winner's Curse - JStor
The winner's curse is a concept that was first discussed in the literature by three ... The winner's curse cannot occur if all the bidders are rational (see Cox and ...