Standard auctions are known to be a revenue-maximizing way to sell an object under broad conditions when buyers are symmetric and have independent private valuations. We show that when buyers have interdependent valuations, auctions may lose their advantage, even if symmetry and independence of...

The Winner's Curse (WC) is one of the most robust and persistent deviations from theoretical predictions that has been established in experimental economics and claimed to exist in many field environments. There have been many attempts to explain the winner's curse, such as ignoring the...