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)seniority.
C)English auction.
D)uniform-price auction.

Question

Quizplus · Accepted Answer

The possibility that the winner (highest bidder) may have bid a price that is very high (far above the value) is referred to as winner's curse. It can occur in various types of auctions, but it is particularly relevant in situations where bidders have incomplete information about the true value of the item being auctioned. In such cases, the winner may end up overpaying and not realizing the true value of the item. This can be a consequence of the winner having a higher estimation of the value of the item than other bidders, or due to the winner's desire to win the auction at any cost.

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