The Winner's Curse refers to a phenomenon in auctions where the winning bidder overpays for an item, often due to competition and emotional bidding. This can lead to regret when the winner realizes that the value of the item does not match the price paid. It highlights the risks of bidding without proper valuation. This concept is commonly observed in various contexts, including real estate and business acquisitions. Understanding the Winner's Curse can help bidders make more informed decisions, ensuring they do not let competition cloud their judgment and lead to financial loss.