The Existence and Persistence of a Winner's Curse: New Evidence from the (Baseball) Field‪.‬

1. Introduction In controlled experiments, bidders at auction often fall prey to a winner's curse, failing to consider factors conducive to overbidding and thus earning disappointing or even negative returns. What is more, this curse appears to be persistent, disappearing slowly (if at all) when experiments are structured to allow subjects to learn from past auction outcomes and modify their bidding behavior. (1)