The winner's curse is a phenomenon akin to a Pyrrhic victory that occurs in common value auctions with incomplete information. In short, the winner's curse says that in such an auction, the winner will tend to overpay. The winner may overpay or be 'cursed' in one of two ways: 1) the winning bid exceeds the value of the auctioned asset such that the winner is worse off in absolute terms; or 2) the value of the asset is less than the bidder anticipated, so the bidder may still have a net gain but will be worse off than anticipated. However, an actual overpayment will generally occur only if the winner fails to account for the winner's curse when bidding (an outcome that, according to the Revenue Equivalence Theorem, need never occur). So despite its dire-sounding name, the winner's curse does not necessarily have ill effects in practice.

Related Uses

The term winner's curse is also used in a related but distinct sense in science, in particular genome-wide association studies. In studies involving many tests on one sample of the full population, the consequent stringent standards for significance make it likely that the first person to report a significant test (the winner) will also report an effect size much larger than is likely to be seen in subsequent replication studies.

From Wikipedia under the GNU Free Documentation License
Thu Jul 22 01:31:02 2010

Survivor: Winner's Edition (Episode 13)?
Q. This is where the Yahoo! community will decide who wins Survivor: Winner's Edition. Last episode Parvati won immunity. There were thoughts of the women's alliance ending. However Vecepia told on Danni to Parv and Jenna. In the end though Parv and Jenna stuck to their word with Yul and kept him around one more time, and the Black Widow 2 alliance voted Earl off the island. He is the 4th member of the jury. Voted off pre-jury: Ethan, Bob, Rupert, Tom, Amber, Todd, Richard, Sandra. Jury: Chris, Aras, Brian, Earl. When Kokamota returned to camp Yul went straight to bed. Danni was happy that the girls stuck to their word, and kept Yul. The next day the final 6 arrived for their reward challenge. Jeff had a surprise for them. "Today's… [cont.]
Asked by Survivor and Lost fan - Sun Jan 18 22:54:24 2009 - - 1 Answers - 0 Comments

A. HA HA HA!! Oh my God this has to be the funniest scenario in the world! And dude, even if it WAS the real idol, you are not allowed to steal it. In the past, they have searched bags, but were not allowed to steal it! I mean they could have, but I think the producer would draw the line at that! LOL though! That made me laugh histericaly. Parvati must be one crazy ass bitch though. Dude you had me laughing for like 5 minutes. Anyway to the story.. Once V and all of the others go to the camp, V looks through her bag and realizes the fake idol was not there. She told everyone...even Danni about this chain of events. They feel since Parv was the one who started yelling at Danni, that the 4 would vote her out. At tribal, Parv and Danni got in a… [cont.]
Answered by James Blake For President! - Mon Jan 19 00:25:26 2009

It's been asked before, but...opinions on my Heisman Curse theory?
Q. Ok so no one who has won the Heisman trophy and been in the championship game that year has ever won EXCEPT Matt Leinart... So my theory is that the Heisman Curse is real and if OU wins this year then the one definitive way to break the curse is... When the two teams in the Championship game have a Heisman winner, the current winner's team (like Matt Leinart in 2004 with USC) will win the game. Jason White (OU quarterback) won the Heisman in 2003 and when OU played USC in the Championship game in 2004 USC won. Well Matt was the "current" Heisman winner. So since Tebow won 2007 and Bradford 2008...If i'm right OU should win this year. Does that make sense at all? by the way I hate OU...Oklahoma State..Go Pokes!
Asked by Krystina P - Thu Dec 25 18:00:40 2008 - - 3 Answers - 0 Comments

A. Hmmm, Bradford is the current Heisman Trophy winner. The jinx would dictate that Florida wins the National Championship game since Tebow is no longer the current Heisman trophy holder. ESPN has an article about Heisman Trophy winners that have been "jinxed" in a variety of different ways, including performances in the national championship game.
Answered by dajjgrinch - Thu Dec 25 18:56:47 2008

From Yahoo Answer Search: "Winner's curse"
Thu Jul 22 01:31:05 2010

Top 10: World Cup rules - TVNZ
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Top 10: World Cup rules - TVNZ
Mon, 28 Jun 2010 19:09:05 GMT+00:00
tvnz there is a slight myth about English underperformance since 1966 but in fact they have achieved reasonable results, and have lost to the eventual winners on ...
How Much Does the Stanley Cup Weigh and Other Fun Facts - Bleacher Report
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How Much Does the Stanley Cup Weigh and Other Fun Facts - Bleacher Report
Wed, 09 Jun 2010 17:21:35 GMT+00:00
Bleacher Report Even the most basic sports fan could tell you the winners ' trophy name before they could tell you one player on the Phoenix Coyotes. ...
'Cardiac kids' proving to be big winners back home - Merced Sun-Star
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'Cardiac kids' proving to be big winners back home - Merced Sun-Star
Fri, 25 Jun 2010 08:28:42 GMT+00:00
back home Merced Sun-Star Neither will the intentional misspelling of foul language or the use of non-English curse words. 3. Be truthful. Do not lie or link to sites that may be ... US wins game, group _ and a whole lot of new fans Merced Sun-Star

From Google News Search: "Winner's curse"
Thu Jul 22 01:31:04 2010

2012 host London shoulders winner s curse
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2012 host London shoulders winner s curse
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Recession hits construction sponsorship shortfalls for Games At least one Olympic official conceded that Britain might not have been so eager to get the Games had it known of the economic meltdown ahead

moneysoftletterheadlogo jpg
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MoneySoft Inc

Real Option Valuation 100 png
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Real Option Valuation 1 0 by Excel Business Tools Real Option Valuation template

From Yahoo Image Search: "Winner's curse"
Thu Jul 22 01:31:05 2010

Female Oscar Winners Cursed In Love
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Female Oscar Winners Cursed In Love

unknown

Fri, 19 Mar 2010 17:00:59 GM

Winning the Academy Award for Best Actress is just a . curse. in disguise. That's how.

Random AC Facts The Altador Cup Blog Altador Cup 5 Info ...
altadorcup.wordpress.com
Random AC Facts The Altador Cup Blog Altador Cup 5 Info ...

ChaosRocket

Mon, 05 Jul 2010 07:44:14 GM

Roo Island managed to recover from the . winner's curse. faster than any other team, only missing the top bracket for one year. Darigan recovered the second most quickly, missing the top tier for 2 years in a row before making it back in. ...

The Perfect Substitute: Edward Jones Commercial: Art Auction and ...
perfectsubstitute.blogspot.com
The Perfect Substitute: Edward Jones Commercial: Art Auction and ...

Justin M Ross

Fri, 03 Oct 2008 10:58:00 GM

Keep an eye out on the TV for what is the best possible 30-second demonstration of the . winner's curse. . Unfortunately, I can only find this online, which requires a subscription to view it. The commercial is for Edward Jones Investments. ...

From Google Blog Search: "Winner's curse"
Thu Jul 22 01:31:05 2010