Poor Charlie's Almanack: The Essential Wit and Wisdom of Charles T. Munger · chapter 4 · id poor-charlies-almanack-c4-07-munger-argues-that-open-outcry

“Munger argues that open-outcry auctions create lollapalooza effects by combining social proof, commitment escalation, and deprival-superreaction, causing participants to overpay.”

holdsconfidence: high✓ ZHP-verified + red-teamed

Receipts

Thaler, 'Anomalies: The Winner's Curse,' JEP (1988)DOI registry: valid

In common-value auctions, the winning bidder systematically overpays. This persists even among experienced bidders.

Ku, Malhotra & Murnighan, 'Towards a Competitive Arousal Model,' OBHDP (2005)FLAGGED: DOI not in registry

Competitive arousal drives bidders to exceed their limits through rivalry, time pressure, and social facilitation.

This claim is a stable, citable object. If you can falsify a verdict, tell us — corrections are loud here.