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The Problem of the Winner's Curse Can Be Avoided

Question 10

Multiple Choice

The problem of the winner's curse can be avoided:


A) if the scope of uncertainty increases among the bidders.
B) by increasing the number of bidders.
C) by increasing the range of actual estimates and bids.
D) if the buyer bids more aggressively in the presence of more rivals.
E) if the buyer assesses the good's acquisition value by first discounting his/her original estimate.

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