Common Value Auction Article Index for
Common
Website Links For
Common
 

Information About

Common Value Auction




One important phenomenon occurring in common value auctions is the Winner's Curse . Since the good is valued equally by all players, the differences between bids will come from different estimates of the common value. If, on average, bidders are estimating correctly, then the ''highest'' bid will have been placed by someone who overestimated the good's value.