 In other words, if a bidder is known to value the lot at $X more than the next highest bidder, the seller can increase their profits by charging that bidder $X – Δ (a sum just slightly inferior to the sum is willing to pay) more than any other bidder (or equivalently a special bidding fee of $X – Δ).This bidder will still win the lot, but will pay more than would otherwise be the case.The winner's curse is a phenomenon which can occur in "common value" settings—when the actual values to the different bidders are unknown but correlated, and the bidders make bidding decisions based on estimated values.