The winner's curse is the tendency in certain types of auctions for:
A. unsophisticated bidders to overpay whenever they win.
B. winners to be unable to win a subsequent auction.
C. winners to regret spending their money on the auctioned item.
D. the owner of the item up for auction to unfairly drive up auction prices.
A. unsophisticated bidders to overpay whenever they win.
You might also like to view...
The game that oligopolists play in trying to reach the oligopoly outcome is similar to the game that the two prisoners play in the prisoners' dilemma
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
A. The four phases of the business cycle, in order, are: peak, recovery, trough, recession. B. When unemployment is rising then real GDP is rising. C. The economic problem typically associated with a recovery is rising unemployment. D. Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.
If the price of a car in the United States is $22,000, and the exchange rate between the dollar and the Japanese yen falls from 125 yen to 105 yen per dollar, then the price of the American car in Japan will
A. rise. B. fall. C. remain the same. D. be irrelevant, because the Japanese government will impose restrictions on imports from the United States.
The purpose of the Corn Laws was to
A. encourage imports and discourage exports, and thus keep the price of food low. B. discourage both imports and exports in order to promote economic self-sufficiency in Britain. C. discourage imports and encourage exports, and thus keep the price of food high. D. encourage both exports and imports in order to integrate the British economy with the rest of Europe.