3 ms·

Only bid if you have already sold the thing to someone not in the auction. :) https://en.wikipedia.org/wiki/Winner%27s_curse https://en.wikipedia.org/wiki/Winn

• HWR_14 3y ago
  That's only true if items with a defined but unknown at the time of bidding. A piece of art doesn't suffer from the winners curse if you are buying it to enjoy.
  • pessimizer 3y ago
    Yes it does. There could be another piece of art that you would "enjoy" equally, but pay less for. If no other piece of art will do, then you yourself are equivalent to the pocket buyer. edit: if you're using "enjoy" to mean "have a private value rather than a shared one," a pocket buyer is a private value. If, instead, your level of enjoyment of the item is around the same level as the rest of the bidders, then there's no reason why the Winner's Curse wouldn't apply.
• tomjakubowski 3y ago
  > If you have alternatives to participating in this auction, perhaps you should abstain. totally off-topic I know -- it's a great answer to so many dull thought experiments too. Like this one that was going around Twitter recently: Everyone responding to this poll chooses between a blue pill or red pill. - if > 50% of ppl choose blue pill, everyone lives - if not, red pills live and blue pills die Just walk away! It's so easy!