Winner's Curse in B2B Auctions Leads to Lower Firm Success
The article discusses how the Winner's Curse, a common issue in auctions, can affect online procurement auctions in B2B settings. By analyzing data from a multinational corporation, the researchers found that the Winner's Curse can lead to lower auction success for firms in certain cases. They suggest that firms need to be cautious in these situations and provide ways to mitigate the negative effects of the Winner's Curse. This study offers insights for companies looking to conduct successful online procurement auctions and suggests areas for future research.