This factor contributes to the winner's curse
A)your estimate of the value of the object was the most optimistic
B)your bid was not the highest
C)there were not many other bidders you had to beat out
D)you shaded your bid too much

Question

​This factor contributes to the winner's curse
A)​your estimate of the value of the object was the most optimistic
B)your bid was not the highest
C)there were not many other bidders you had to beat out
D)​you shaded your bid too much

Quizplus · Accepted Answer

If you overestimate the value of the object, you are more likely to win the auction by bidding too high. This results in the winner's curse, where you end up paying more than the item is worth.

​This Factor Contributes to the Winner's Curse

This Factor Contributes to the Winner's Curse