Winner’s curse: The feeling that you overpaid simply because you were the highest bidder.
Reflect on all the costs and benefits of winning or losing the auction in calculating your reservation value.
Costs often include much more than price. Could be your reputation, or competitive advantage in the marketplace.
The only scenario that matters is the one where you win. Think to yourself, “Am I comfortable paying this price, even if it turns out that I overpaid?”