The Indicator from Planet Money Why you overpaid at that online auction
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Nov 17, 2025 Ever found yourself overbidding in an auction, only to realize you’ve overpaid? This fascinating conversation dives into the concept of the winner’s curse. Behavioral economics at play reveals why we often make irrational decisions in competitive settings. Learn how Richard Thaler and Alex O. Imas tackle these anomalies in their new book. Plus, hear insights on how behavioral patterns can shape our financial strategies and decision-making processes.
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What The Winner’s Curse Means
- The episode defines the "winner's curse" as paying too much when you win an auction or competitive bid.
- Richard Thaler and Alex O. Imas explore how behavioral anomalies cause people to overpay in markets.