# Auction Winners Curse Haircut

> Applies a Bayesian haircut to a bid valuation for common-value auctions where winning is itself e…

Applies a Bayesian haircut to a bid valuation for common-value auctions where winning is itself evidence the bidder over-estimated. Takes a raw valuation, a value-type classification (common_value / private_value / mixed), the number of informed bidders N, and a signal-dispersion estimate, and returns an adjusted valuation. Domain-neutral and reusable across fantasy FAAB, prediction markets, M&A bids, ad-auction budgets, and any generic bidding context. Use when user mentions "winner's curse", "common value auction", "valuation haircut", "adverse valuation", "Bayesian bid adjustment", or "over-paying in auction".

- Page: https://ss33.ai/skills/lyndonkl/auction-winners-curse-haircut-29857681836
- Publisher: lyndonkl
- Category: [Finance & Markets](https://ss33.ai/skills/category/finance-and-markets-gri5ar) › [Trading & market analysis](https://ss33.ai/skills/category/finance-and-markets-gri5ar/trading-and-market-analysis-e7prsg)
- Source: https://github.com/lyndonkl/claude/blob/4acc337d4dbdb19da6469eb2504c16669c1cafa1/skills/auction-winners-curse-haircut/SKILL.md

## Skill

This skill's licence does not allow redistribution, so the store does not serve its text. Get it from the author: https://github.com/lyndonkl/claude/blob/4acc337d4dbdb19da6469eb2504c16669c1cafa1/skills/auction-winners-curse-haircut/SKILL.md