Deborah Green estimates the cost of future projects for a large contracting firm. Deborah uses precisely the same techniques to estimate the costs of every potential job and formulates bids by adding a standard profit markup. For some companies, to which the firm offers its services, there are no competitors also seeking their business, so Deborah's company is almost certain to get these companies as clients. For these jobs, Deborah finds that her cost estimates are right, on average. For jobs where competitors are also vying for the business, Deborah finds that they almost always end up costing more than she estimates.

True or False: To avoid the winner's curse, Deborah should assume that everyone else thinks the costs are greater than her original estimate, and adjust her bid accordingly.

True

False