When multiple acquirers bid up the price of a target and the ultimate acquirer ends up paying too much this is known as the
A) "loser's blessing."
B) "winner's curse."
C) "loser's curse."
D) "winner's blessing."

Question

Quizplus · Accepted Answer

The "winner's curse" occurs when multiple acquirers bid up the price of a target and the ultimate acquirer ends up paying too much for the target. This happens because the winning bidder is likely to have overestimated the target's value or competed against overly optimistic rivals. As a result, the winner may end up with a lower return on investment than anticipated.

When Multiple Acquirers Bid Up the Price of a Target