To avoid the winners curse
A)Bid as if you have estimated the valuation higher than any other bidder
B)Bid as if you have estimated the valuation highest
C)Bid as if you are the smartest of all the bidders
D)Bid as if everyone else has a terrible estimate of the value of the product

Question

​To avoid the winners curse
A)​Bid as if you have estimated the valuation higher than any other bidder
B)Bid as if you have estimated the valuation highest
C)Bid as if you are the smartest of all the bidders
D)​Bid as if everyone else has a terrible estimate of the value of the product

Quizplus · Accepted Answer

Bidding as if you have estimated the valuation highest helps avoid the winner's curse by ensuring you don't overpay based on overly optimistic assumptions.

​To Avoid the Winners Curse

To Avoid the Winners Curse