Answer:
The correct answer is - A son winning his mother’s favorite painting to give her for her birthday.
Step-by-step explanation:
The winner's curse is a phenomenon that can occur in common value auctions with incomplete information. In short, the winner's curse says that at auction, the winner will tend to pay more. The winner may overpay or be "cursed" in one of two ways: 1) the winning bid exceeds the value of the auctioned good so that the winner is the worst in absolute terms, or 2) the value of the asset is less than the one expected by the bidder, so the bidder may still have a net gain, but it will be worse than expected. However, generally the overpayment will occur only if the winner does not take into account the winner's curse when making an offer (a result that, according to the income equivalence theorem, will not necessarily occur).
In this type of auction, the valuation of the product by the buyer does not depend on the valuations and / or information of others.