If you win something at auction, even if you end up paying your full bid, you are typically quite happy, rather than just a smidgen happy.
Then why didn’t you bid more in the first place?
Is your mistake being too happy, or is your mistake having bid too low?
Do you become happy only by winning discrete, decent-sized lumps of happiness, rather than smidgens of happiness? Does that even make sense?
Or is it just the value of winning per se, in which case there might be some other artificial way of manufacturing the same feeling?
Note this all runs a bit counter to winner’s curse arguments, which suggest you should be a smidgen unhappy when you win, not when you lose.
How should we best model this?