The "winner's curse" refers to a phenomenon that occurs in auctions or competitive bidding situations, where the winning bidder overpays for an item. This often happens when bidders have incomplete information about the true value of the item, leading them to bid more than it is worth. As a result, the winner may end up regretting their decision, realizing they have overestimated the item's value. This concept is commonly observed in various fields, including real estate, art auctions, and business acquisitions. To avoid the winner's curse, bidders should conduct thorough research and set clear limits on how much they are willing to pay before entering the bidding process.