@article{ref1,
title="Preferences and Decision Errors in the Winner's Curse",
journal="Journal of risk and uncertainty",
year="2007",
author="Garbarino, Ellen and Slonim, Robert",
volume="34",
number="3",
pages="241-257",
abstract="The problem of asymmetric information causes a winner's curse in many environments. Given many unsuccessful attempts to eliminate it, we hypothesize that some people 'prefer' the lotteries underlying the winner's curse. Study 1 shows that after removing the hypothesized cause of error, asymmetric information, half the subjects still prefer winner's curse lotteries, implying past efforts to de-bias the winner's curse may have been more successful than previously recognized since subjects prefer these lotteries. Study 2 shows risk-seeking preferences only partially explain lottery preferences, while non-monetary sources of utility may explain the rest. Study 2 suggests lottery preferences are not independent of context, and offers methods to reduce the winner's curse.   <p>Language: en</p>",
language="en",
issn="0895-5646",
doi="10.1007/s11166-007-9013-x",
url="http://dx.doi.org/10.1007/s11166-007-9013-x"
}