Common value considerations also arise in markets for construction and homeimprovements. Once, the author asked several flooring companies to bid on replacing somekitchen floor tile. Each bidder would estimate the amounts of materials needed and thetime required to remove the old tile and install the floor around the various odd-shapeddoorways and pantry area. One of the bids was somewhat lower than the others. Instead ofexpressing happiness over getting the job, he exhibited considerable anxiety about whetherhe had miscalculated the cost, although in the end he did not withdraw his bid. This storyillustrates the fact that winning an auction can be an informative event, or equivalently, thefact that your win produces new information about the unknown value of the prize. Arational bidder should anticipate this information in making the original bid. This is a subtlestrategic consideration that is almost surely learned by （unhappy） experience. ……
