The possibility that the winner (highest bidder) in an auction process may have bid a price that is very high (far above the value) is called:
A) Winner's curse
B) Dutch auction
C) English auction
D) None of the above

Question

Quizplus · Accepted Answer

The winner's curse refers to a situation in which the winning bidder overpays for an item because they have limited information about its true value or because they get caught up in the excitement of the auction process. This can lead to buyer's remorse and may result in the winner feeling that they did not get a good deal.

The Possibility That the Winner (Highest Bidder) in an Auction