Experienced bidders show sensitivity to the strategic considerations underlying common value auctions, but not to item valuation considerations. Auctions with large numbers of bidders (6-7) produce more aggressive bidding than with small numbers (3-4), resulting in negative profits, the winner's curse. Providing public information about the value of the item increases seller revenue in the absence of a winner's curse, but produces the contrary result in its presence.

Badi H. Baltagi, Dan Levin, Estimating Dynamic Demand for Cigarettes Using Panel Data: The Effects of Bootlegging, Taxation and Advertising Reconsidered, The Review of Economics and Statistics, Vol. 68, No. 1 (Feb., 1986), pp. 148-155