In the middle ages, the French government auctioned off monopoly rights to the sale of salt. Economic theory predicts that the highest bids would

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Economic theory suggests that in auctions for monopoly rights, the highest bids will typically equal the economic profits the winning bidder expects to earn. This is because bidders will bid up to the point where the expected profit from obtaining the monopoly rights equals the cost of the bid, a concept known as the winner's curse in auction theory.

In the Middle Ages, the French Government Auctioned Off Monopoly