The Winner’s Curse is an economic phenomenon that occurs when the highest bidder for an asset ends up paying more than its actual value. This often happens in auctions and other competitive bidding environments, where participants often overestimate the true worth of the assets and end up “winning” by paying too much. The term ‘Winner’s Curse’ implies a hidden cost to success, as it can lead to significant losses for investors who do not effectively evaluate the risks involved with their investments. On the flip side, it also creates opportunities for savvy traders and finance professionals who can exploit this market imbalance to their advantage.