A bidding model in which the value of what is being auctioned, while unknown at the time of the auction, is known to be the same for all bidders. In such a model, bidders must correct for the selection bias, often called the “winner's curse,” caused by the fact that winning bidder is likely to have been the one who most overestimated the value. See Bidding.
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© 2001 Kluwer Academic Publishers
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Gass, S.I., Harris, C.M. (2001). COMMON VALUE Bidding model . In: Gass, S.I., Harris, C.M. (eds) Encyclopedia of Operations Research and Management Science. Springer, New York, NY. https://doi.org/10.1007/1-4020-0611-X_134
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DOI: https://doi.org/10.1007/1-4020-0611-X_134
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