What is the Winner's Curse?

The "curse of the winner" is the name of a phenomenon in economics. It is assumed that there are many kinds of bid prices for a particular land (or other goods and assets), and the bidders' estimates of the value of the land are basically correct. If each bidder's offer is his estimate of the value of the land, then the highest bidder is usually likely to pay more for the land than it is worth.

The curse of the winner

Author: [US] Richard Taylor · H · Press: Renmin University of China Publishing House subtitle: · Curse of the economic life of paradox winner of the anomaly Translator:
(US) Richard H. Thaler's Curse of the Winner
This is a book about economics
Richard H. Thaler, born in 1945, graduated from the University of Rochester in 1974 with a PhD in economics. He currently teaches at the University of Chicago School of Business, Robert P. Gwinn Professor of Finance and Behavioral Science, director of the Center for Behavioral Decision Research, and is in charge of behavioral economics research at the National Economic Research Institute (NBER). Professor Taylor's research mainly focuses on the interdisciplinary fields of psychology and economics. He belongs to the pioneers of "economic imperialism" and is considered a pioneer economist in the fields of modern behavioral economics and behavioral finance. And investment behavior research has deep research accomplishments. He has published a number of high-level papers and published several monographs, including representative books such as "The Curse of the Winner" and "Quasi-rational Economics." [1]
Chapter 1 Introduction Chapter 2 Cooperation 2.1 Public Product Tests in a Single Game 2.2 Repeated Games 2.3 Reciprocal Altruism 2.4 Altruism 2.5 Comments Chapter 3 Ultimatum Game 3.1 Simple Ultimatum Game 3.2 Two-stage Bargaining Game 3.3 Multi-stage Game 3.4 Ultimatum Game in the Market 3.5 Comments Chapter 4 Wage Differences Between Industries 4.1 Facts 4.2 Possible Explanations 4.3 Which Industries Pay High Salaries? why?
4.4 Theoretical Explanation 4.5 Commentary Chapter 5 The Curse of the Winner 5.1 Experimental Evidence 5.2 Field Evidence 5.3 Commentary Chapter 6 Endowment Effect, Loss Avoidance, and Status Bias 6.1 Endowment Effect 6.2 Current Status Bias 6.3 Loss Avoidance 6.4 Judgment for Fairness and Justice 6.5 Commentary Chapter 7 Reversal of Preference 7.1 Compatibility Hypothesis 7.2 Review Chapter 8 Intertemporal Selection 8.1 Changes in Discount Rates Individually 8.2 Reference Points 8.3 Pleasure and Fear 8.4 Review Chapter 9 Savings, Substitutability, and Mental Accounts 9.1 Current Issue Income account: Consumption depends on income 9.2 Is wealth replaceable?
9.3 Liquidity constraints or debt avoidance?
9.4 Comment Chapter 10 Jackpot Market 10.1 Horse Racing Betting Market 10.2 Raffle Game 10.3 Comment Chapter 11 Stock Market Calendar Effect 11.1 January Effect 11.2 Weekend Effect 11.3 Holiday 11.4 Monthly Conversion Effect 11.5 One Day Effect 11.6 Comment Chapter 12 Wall Street Stock Market Mean Regression 12.1 Mean return of stock market average 12.2 Cross-section mean return 12.3 Short-term mean return 12.4 Commentary Chapter 13 Closed-end mutual funds 13.1 Four-component anomaly 13.2 Standard explanation 13.3 Bamboo basket watering 13.4 Investor sentiment A possible way to explain the mystery of the fund 13.5 Comment on Chapter 14 Foreign Exchange 14.1 Inspection of Forward Discount Deviation 14.2 Foreign Exchange Risk Premium 14.3 Expected Error 14.4 A Possible Interpretation 14.5 Comment Chapter 15 Postscript Reference Index Translation Postscript [ 1]
The master elaborates on game theory (a total of 6 volumes). This series of books also includes "win-win", "micro-motivation and macro-behavior", "rational choice", "strategy game", "popular game theory". [1]

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