The Winner's Curse: Common Values and Estimate Errors (Chart)
This lesson is part of the course
In this lesson
You measure how much the winners of eight pallet auctions overpaid, compare it with the theoretical overestimate and chart the result.
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Lessons in this course
- Auction Formats: Who Wins and Who Pays (English, Dutch, First-Price, Vickrey)Free
- Expected Revenue with Uniform Values: Order Statistics Locked
- Optimal Bid Shading in First-Price Auctions: (n − 1) ÷ n × Value Locked
- Revenue Equivalence: First-Price, Second-Price and All-Pay Side by Side Locked
- Reserve Prices: Expected Revenue over Reserve Levels (Chart) Locked
- The Winner's Curse: Common Values and Estimate Errors (Chart) Locked
- Ad Auctions: Generalised Second Price, Quality Score and the Best Position Locked
- Bidding in Procurement (Reverse) Auctions: Margin vs Win Probability Locked