winner's curse


In competitive bidding, the idea that since some buyers will underestimate the value of an item and others will overestimate it, the high bidder will usually be one of the people that overestimated. Therefore there is a good chance that the 'winner' paid too much for the item.

Use winner's curse in a sentence

They had winner's curse and that was a good reason as to why everything was working out in a certain way.

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It wasn't until three weeks after the buy that she realized she had suffered winner's curse and actually would not be able to break even.

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Even though the oil company won the drilling rights in the Gulf of Mexico by being the highest bidder, the CEO feared the company suffered winner's curse by paying more than the intrinsic value of the site.

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