Winners’ curse (See Chapter 31 of the Vernimmen) Winners’ curse is when the winner of a sale by auction ends up paying more than the item was worth. It is assumed that some buyers will underestimate and others overestimate the value of the item up for auction, and accordingly, the winner will be one of those who have overestimated the value and thus has paid too much. Winners’ curse (See Chapter 31 of the Vernimmen) Winners’ curse is when the winner of a sale by auction ends up paying more than the item was worth. It is assumed that some buyers will underestimate and others overestimate the value of the item up for auction, and accordingly, the winner will be one of those who have overestimated the value and thus has paid too much. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Winners’ curse" :

WACC Wait and see option Wakala Warehousing agreement Warm up Warrant Warrant kicker

Weak currency Weak-form efficient market Wealth Weekend effect Weighted Average Cost of Capital, WACC Weighted average cost White knight

Window dressing Winners’ curse Working capital Working capital needs Working capital requirements Working capital turnover ratios Write-downs