Empirically, social dilemma under information asymmetry are often much less pronounced than theory predicts. Traders experience a winner’s curse and maintain e?ciency enhancing exchange of commodities when theory predicts none. Especially under competition, cursed parties undergo severe losses and thereby fund social welfare. Hence, if one cures the winner’s curse, one often decreases social welfare. Here, I test how market e?ciency can be maintained without individual losses. In a competitive common value auction, parties sidestep both market ine?ciency and a winner’s curse by judging quality-by-price, and setting price-by-quality.
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