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Winner's Curse
(redirected from Winners' Curse)

    Also found in: Wikipedia 0.01 sec.
Winner's curse
Problem faced by uninformed bidders. For example, in an initial public offering uninformed participants are likely to receive larger allotments of issues that informed participants know are overpriced.
Winner's Curse
In auctions, the tendency for the winning bid to exceed the intrinsic value of what is being offered. This trend was first noted among energy companies during auctions for bidding rights to drill in the Gulf of Mexico. It is thought that insufficient information and, perhaps more so, the emotional desire to win in the heat of an auction contribute to the winner's curse. See also: Behavioral economics.
winner's curse
The likelihood the winning bidder in an auction of several bidders will pay too high a price. From an investor's standpoint, the winner's curse implies the stockholders of the firm acquired in a merger will benefit at the expense of the stockholders of the acquiring firm when several potential acquirers are involved in the bidding.
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Forget the last two weeks, he's a proper musician who could break the male winners' curse and do well.
Who was on song last night? by Daily Record (Glasgow, Scotland)
Whether it was the weight or the 14-week layoff or the Breeders' Cup winners' curse that jumped up and bit Life Is Sweet, there's no denying St Trinians, ridden by Joel Rosario, has developed into a major force in the older fillies and mares division.
St Trinians could challenge Zenyatta by Daily News (Los Angeles, CA)
Thus, the standby arrangement increases the probability that uninformed investors face a winners' curse.
Determinants of the pricing of privatization IPOs in the UK and ... by Suchard, Jo-Ann; Singh, Manohar / International Journal of Business
 
 
 
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