The winner's curse is reduced in a(n)

Name: The winner's curse is reduced in a(n)
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a uniform-price auction, all winning bidders pay the same price per unit, which reduces the winner's curse. This is because in a winner-takes-all auction (D), the winning bidder may end up overpaying for the item, whereas in discriminatory auctions (A) and English auctions (C), there is still a potential for the winner's curse to occur as the winning bidder may end up paying more than the item is worth.

The Winner's Curse Is Reduced in A(n)