When competitive bidding is coupled with imperfect information,the winning bid is usually the most reliable estimate of the true value.

Question

Quizplus · Accepted Answer

When there is imperfect information, the winning bid may not necessarily be the most reliable estimate of the true value. In fact, without complete information, it is possible for the winning bid to be significantly over or under the true value.

When Competitive Bidding Is Coupled with Imperfect Information,the Winning Bid