This Factor Contributes to the Winner's Curse

question 40

Multiple Choice

This factor contributes to the winner's curse

• A)your estimate of the value of the object was not the most optimistic
• B)your bid was not the highest
• C)there were many other bidders that you beat out
• D)you did not shade your bid enough

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Definitions:

Rule of Law

The principle that all members of a society, including those in government, are equally subject to publicly disclosed legal codes and processes.

Infrastructure

The basic physical and organizational infrastructure and services such as buildings, roads, and power facilities required for the functioning of a society or business.

Human Capital

The collective skills, knowledge, and other intangible assets of individuals that can be used to create economic value.

Surplus Labor

This term refers to the portion of the labor force which is not currently being employed to its full potential, often leading to unemployment or underemployment in an economy.