Professor Richard Thaler: Masters in Business (Audio)
Masters in Business
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The Winters Curse
Lana Richfield: The winner's curse was discovered by engineers at an oil company. They found that when they were bidding for oil leases, every time they won a lease, there was less oil in the ground than they expected. So and the lesson is, the more bidders there are, the more likely it is that if you win the auction, you lost. And live auctions have a way of getting people carried away.
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