A manager is participating in an auction where values or common or correlated and is not 100 percent certain of the value of the item. The manager_______ reduce their bid below their estimated value to_______ the winner's curse.

Question

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The manager should reduce their bid below their estimated value to avoid the winner's curse. The winner's curse refers to a situation where the winning bidder in an auction overpays for the item being auctioned because they have bid more than any other interested party. This can happen when bidders are uncertain about the true value of the item and end up bidding higher than they should. By reducing their bid below their estimated value, the manager can avoid overpaying and falling victim to the winner's curse.

A Manager Is Participating in an Auction Where Values or Common