The selection bias that occurs in an auction or other situation in which bidders with independent estimates of the value of an item compete to buy it. Even though all of the competitors' estimates are unbiased, the winner will have tended to overestimate the value. Also used, less precisely, to denote an expected loss by a winning bidder. Bidding models.
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© 2001 Kluwer Academic Publishers
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Gass, S.I., Harris, C.M. (2001). Winner's Curse . In: Gass, S.I., Harris, C.M. (eds) Encyclopedia of Operations Research and Management Science. Springer, New York, NY. https://doi.org/10.1007/1-4020-0611-X_1128
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DOI: https://doi.org/10.1007/1-4020-0611-X_1128
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