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The Winner's Curse Occurs Because

Question 27

Multiple Choice

The winner's curse occurs because:


A) competitors in auctions often make poor bids.
B) there are too many competitors in most auctions.
C) competitors in auctions usually make bids that are below the expected value of the prize.
D) sealed-bid auctions have too much uncertainty attached to them.
E) the winning competitor in an auction will make a bid that is greater than the average bid.

Correct Answer:

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