The winner’s curse may occur in common value auctions with incomplete information. It occurs when:
1. a bidder can only afford items that he really doesn’t want.
2. a bidder has to bid too aggressively (high), wins the bid, but is worse off for winning.
3. a bidder comes in with a low bid because he isn’t sure he really wants it, but wins the auction anyway.
4. The bidder gets the item at a price that is less than the seller wants.