- Author : John H. Kagel
- Publisher : Princeton University Press
- Release Date : 2009-04-11
- Genre: Business & Economics
- Pages :
- ISBN 10 : 1400830133
Common Value Auctions and the Winner s Curse Book Description :
Few forms of market exchange intrigue economists as do auctions, whose theoretical and practical implications are enormous. John Kagel and Dan Levin, complementing their own distinguished research with papers written with other specialists, provide a new focus on common value auctions and the "winner's curse." In such auctions the value of each item is about the same to all bidders, but different bidders have different information about the underlying value. Virtually all auctions have a common value element; among the burgeoning modern-day examples are those organized by Internet companies such as eBay. Winners end up cursing when they realize that they won because their estimates were overly optimistic, which led them to bid too much and lose money...