The winner’s curse is the tendency of the winner of an auction among bidders with noisy estimates of a common value to have overestimated it: winning is itself evidence that one’s estimate was too high.
Quantitative Finance · Glosarium
Quantitative Finance · Glosarium
The winner’s curse is the tendency of the winner of an auction among bidders with noisy estimates of a common value to have overestimated it: winning is itself evidence that one’s estimate was too high.