Watch collecting and the winner's curse

How information asymmetry leads to poor purchase decisions

The winner's curse is not a new concept, and it came up recently in an online newsletter, and got me thinking about how it applies to watches. As always, I look forward to your feedback on the topic. 

The Winner's Curse

The winner’s curse is a famous empirical phenomenon in common value auctions, first described by Capen, Clapp, and Campbell (1971). These…