Economics
Common-Value Auctions and the Winner's Curse
Quick fact
In common-value auctions, the winner is statistically more likely to be the one who overestimated the value—a phenomenon so consistent it earned the name 'winner's curse.'
Why this is interesting
Imagine a jar full of coins. Everyone knows the coins are worth the same, but you can't count them. You guess, others guess, and the highest bidder wins the jar. Would you walk away feeling like a winner?