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Winner’s Curse in an Auction

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Abstract

The classic example of common value is represented by oil fields which are auctioned to private oil companies. One of the famous cases is that of the Chinese oil company Natural Petroleum Corporation which had to pay an exorbitant price at the auction of oil drilling rights held by Venezuela in 1997. This is the background.

Keywords

  • Railway Company
  • English Auction
  • Indifference Price
  • Auction Strategy
  • Auction Dynamic

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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© 2015 Gregor Berz

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Berz, G. (2015). Winner’s Curse in an Auction. In: Game Theory Bargaining and Auction Strategies. Palgrave Macmillan, London. https://doi.org/10.1057/9781137475428_7

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