Short Story: How to avoid the 'winner's curse'
Then how do you avoid the winner's curse? Experts advice that before placing a bid, pause to consider how you would feel if you won the auction. Because the winner's curse, at its core, is a combination of cognitive and emotional friction. There are many companies that succeed in the auction and fail as a result, and in this regard, leaders of companies ahead of the big auction should carefully consider whether this was based on their excessive greed before making a decision. #auction #decision #leader

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24. Asymmetric information: auctions and the winner's curse

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"This prize is about avoiding the winner's curse." Interview: The 2020 Prize in Economic Sciences

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