The "winner's curse" refers to a situation where the winning bidder's net present value of the project benefits is equal to the net present value of the project costs. the winning bidder would be better off if they had lost in the auction. the winning bidder's consumer surplus is completely captured by the seller. the winning bidder is engaging in "voodoo economics" and becomes cursed.

The "winner's curse" refers to a situation where the winning bidder's net present value of the project benefits is equal to the net present value of the project costs. the winning bidder would be better off if they had lost in the auction. the winning bidder's consumer surplus is completely captured by the seller. the winning bidder is engaging in "voodoo economics" and becomes cursed.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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