Which of the following is most likely to be an example of the winner's curse?
A) a college student purchasing a text book at the campus book store
B) a new parent subscribing to a parenting magazine
C) roommates joining an online fantasy football league
D) a baseball team offering the highest contract to a free agent player

Question

Quizplus · Accepted Answer

The winner's curse refers to a situation in which the winner of an auction or bidding process pays more than the item is actually worth. In this case, the baseball team offering the highest contract to a free agent player is the most likely example of the winner's curse as they may end up paying more than the player's actual worth, leading to financial losses in the long run.

Which of the Following Is Most Likely to Be an Example