Standard economic theory is based on the assumption that people behave rationally. The winners curse implies that
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Standard economic theory is based on the assumption that people behave rationally.
The winner’s curse implies that people behave irrationally by paying more for an asset than it is worth. Can we reconcile the winner’s curse with rational behavior?
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Reconciling the Winners Curse with Rational Behavior The winners curse is a phenomenon in auctions w...View the full answer
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