The winner's curse is more likely when the value of a good at auction is uncertain.

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The winner's curse is a phenomenon where the winner of an auction pays more than the true value of the good they've won. This is more likely to occur when the value of the good is uncertain because bidders have to make their bids based on imperfect information. Without a clear understanding of the value of the good, bidders may get caught up in the excitement of the auction and bid too high, leading to the winner's curse.

The Winner's Curse Is More Likely When the Value of a Good