how can one lose by winning ?? i ran across an excellent book by thaler called "winner's curse". totally applicable to this game we play. enjoy ! surfer
The highest bidder in an auction is the participant who places the highest value on the auctioned object. Therefore, it is likely that the winning bidder has an overly optimistic assessment of true value. Winning the auction suggests you have overpaid for the object - this is the winner's curse. In the case of IPOs, your ability to "win" an allotment of shares may signal that the stock is overpriced. Hope this helps.
thanks ! how about "winning" by buying at the bid, but being wrong on direction at the time of entry. that would be a "winners curse". i have thaler's book on order. best, surfer