31E11100 - Microeconomics: Pricing, Lecture, 13.9.2021-25.10.2021
This course space end date is set to 25.10.2021 Search Courses: 31E11100
Reading assignment 6 (due 20.10. at 10:15)
Completion requirements
Due: Wednesday, 20 October 2021, 10:15 AM
Read
Richard H. Thaler (1988): “Anomalies: The Winner’s Curse”, Journal of Economic
Perspectives 2 (1). (publicly available at https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.2.1.191
).
1. Explain what is meant by winner’s curse. In what kind of auctions could it apply?
2. How should rational economic agents take into account the possibility of winner’s curse?