The winner's curse is a phenomenon that occurs in auctions or competitive bidding processes where the winner tends to overpay or experience a suboptimal outcome compared to the intrinsic value of the item being auctioned. It arises when bidders in the auction have incomplete or imperfect information about the true value or worth of the item, leading the winning bidder to potentially pay more than the item is worth.Careful what you win for 🎯💸 Overbidding leads to regret—especially when emotion outpaces logic.For more mental models, please visit www.mentalmodelsdaily.com Get the full list at https://tinyurl.com/mentalmodelsdailyFollow us:X: @mindmodelsdaily https://x.com/mindmodelsdaily Instagram: @mentalmodelsdaily https://www.instagram.com/mentalmodelsdaily/ Youtube: https://www.youtube.com/@MentalModelsDaily/podcasts Spotify: https://open.spotify.com/show/1f0qi12saeBEJmtnjOSszg Amazon Music: https://music.amazon.co.uk/podcasts/6da552cf-1714-45ce-b302-7c6c69386fc3/mental-models-dailyApple Podcasts: https://podcasts.apple.com/gb/podcast/mental-models-daily/id1754257683Castbox: https://castbox.fm/channel/Mental-Models-Daily-id6203840?country=usiHeartRadio: https://www.iheart.com/podcast/269-mental-models-daily-189536773/Our Podcast music was provided by The Podcast Host and Alitu: The Podcast Maker app.

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