"In almost common value auctions one bidder has a higher (private) value for the item than the other bidders. Theory predicts that even a small private value advantage can have an explosive effect in English auctions, with advantaged bidders always winning and sharp decreases in revenue. These...

The Winner s Curse (WC) is a non-equilibrium behavior in common-value auctions involving systematic and persistent overbidding that often results in signi ficant losses. It is one of the most robust fi ndings in laboratory experiments. We developed an auction mechanism with a payment rule that...