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Or to put it another way.

Everyone has incomplete information. If you bid more than everyone else it's because one of the following is true.

1. It is more valuable to you than anyone else.

2. Everyone else is mistakenly undervaluing it

3. You are mistakenly overvaluing it

If you don't have inside information, or have a unique reason why it is worth more to you than anyone else. Then 3 is far more likely than 2.




Could you say this is "wisdom of the crowds" working against the bidder?




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