http://gametheory101.com/courses/game-theory-101/
Imagine you are about to bid in an auction to buy an oil field. You send a prospector out to estimate its value, and he informs that the area is flush with oil that can be extracted for a low price. Should you bid aggressively on it?
The winner's curse indicates that doing so is likely to backfire. This lecture explains the problem. Next time, we will cover the solution.
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