#2015 #book-2 #cfa #cfa-level-1 #economics #schweser
Because common value auction participants estimate the value with error, the bidder who most overestimates the value of a lease will be the highest (winning) bidder. This is sometimes referred to as the winner's curse, and the winning bidder may have losses as a result.
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- (no access) - 2015 CFA Level 1 Study Schweser Book 2 - Economics, p18
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