Winner’s Curse: Negotiation Mistakes to Avoid

In this article, the author discusses the concept of the winner’s curse in competitive bidding negotiations. They use a simple game as an example, where the highest bidder wins a jar of coins. The winner’s curse occurs when the winner ends up paying more than the item is actually worth. The author advises readers to analyze the value of the asset being bid on and compare their capabilities with other bidders. They also emphasize the importance of evaluating one’s BATNA (best alternative to a negotiated agreement) and not being too focused on winning at any cost. The article ends by inviting readers to share their experiences with the winner’s curse.

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