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Question

What is the phenomenon known as "winner's curse" in software field?

a.

Software providers tend to overestimate the cost of most likely cost

b.

Software providers with over-optimistic estimates tend to have the lowest bids

c.

Software clients require a fixed-price contract

d.

All of the above

Posted under Software Engineering

Answer: (d).All of the above Explanation:The winner's curse is a phenomenon known from auctions where players are uncertain of the value of a good when they bid. In the software field, it has the characteristics that software providers differ in optimism in their estimates of most likely cost, software providers with over-optimistic estimates tend to have the lowest bids, and software clients require a fixed-price contract.

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Q. What is the phenomenon known as "winner's curse" in software field?

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