To Avoid the Winner's Curse,a Bidder Should

question 121

Multiple Choice

To avoid the winner's curse,a bidder should:

• A) not participate in Dutch auctions.
• B) only participate in second-price and English auctions.
• C) revise upward his private estimate of the value of the item.
• D) revise downward his private estimate of the value of the item.

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Definitions:

Explicit Memory

A type of long-term memory involving conscious recall of facts and experiences.

Implicit Memory

Retention independent of conscious recollection. (Also called nondeclarative memory.)

Conscious Memory

The aspect of memory that involves the intentional recall of information and experiences that one can consciously declare or "know."

Retrieval Cues

Stimuli or signals that help in the recall of memories stored in long-term memory.