Editing Speculation (section)

=== Winner's curse ===

Auctions are a method of squeezing out speculators from a transaction, but they may have their own [[perverse effects]] by the [[winner's curse]]. The winner's curse is, however, not very significant to markets with high liquidity for both buyers and sellers, as the auction for selling the product and the auction for buying the product occur simultaneously, and the two prices are separated only by a relatively small spread. That mechanism prevents the winner's curse phenomenon from causing mispricing to any degree greater than the spread.<!-- {{Citation needed|date=June 2008}} Simple math. see the definition of Winner's curse! removed with prejudice by Fabartus 2016-10-26 --->