The potential size of the winner's curse increases as _____

Question

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The winner's curse refers to the situation where the winner of an auction overpays for the item being auctioned because they have placed a higher value on the item than anyone else. As a result, the potential size of the winner's curse increases as the degree of uncertainty about the value of the item increases. This is because a lack of information increases the likelihood that bidders will place a higher value on the item than it is actually worth, leading to overbidding and the winner's curse.

The Potential Size of the Winner's Curse Increases as _____