The publisher that paid popular novelist Arthur James a $2 million advance for his recent novel,which sold only 42 copies,fell victim to _____

Question

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The situation described is an example of the winner's curse, where the winning bidder in an auction or negotiation overpays for an asset or good because they overestimate its value compared to other bidders. In this case, the publisher overestimated the popularity of the novel and paid a high advance, but the low sales indicate that the actual value of the book was much lower than the publisher's estimate.

The Publisher That Paid Popular Novelist Arthur James a $2