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Auctions with one seller and many bidders are often plagued by the winner's curse: the winner overpays for the auctioned item. (a) How is this

Auctions with one seller and many bidders are often plagued by the "winner's curse:" the

winner overpays for the auctioned item.

(a) How is this relevant to financial markets?

(b) What does this mean for research that uses daily prices?

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