Stephen W Miller

Mar 24, 2023 | aier.org | Stephen MIller |Stephen W Miller

PrintAs states periodically consider renewing and increasing economic development incentives, they would do well to consider the problem of the Winner’s Curse. The Winner’s Curse is a common result of competitive auctions, where the bidder who “wins,” say, a used car, is overly optimistic about its condition and value and thus overpays for it. Congratulations, you have won the auction and must pay top dollar.