What is winner's curse?
The winner's curse is the tendency of the winning bidder in an auction to overpay because they had the highest, and often most optimistic, estimate.
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winner's curse in AI data
It is acute for data, because buyers cannot fully judge quality before they buy.
Type: auction effect.
Where winner's curse applies on this site
- Mechanism: English auction
- Mechanism: First-price sealed-bid auction
Quick answers
What is winner's curse?
The winner's curse is the tendency of the winning bidder in an auction to overpay because they had the highest, and often most optimistic, estimate.
Why does winner's curse matter in AI data?
It is acute for data, because buyers cannot fully judge quality before they buy.