Reservation Prices And Pre-Auction Estimates: A Study In Abstract Art
AbstractUsing a sample of European abstract art we show that reservation prices constrain pre-auction estimates in such a way that we are more likely to observe overestimation relative to the midpoint of the estimation window. At the same time, we also find that the low pre-auction estimate is a more powerful, accurate and precise predictor of hammer prices than the high estimate.
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Bibliographic InfoArticle provided by Academy of Economic Studies - Bucharest, Romania in its journal The AMFITEATRU ECONOMIC journal.
Volume (Year): 10 (2008)
Issue (Month): 24 (June)
Art Auctions; Abstract Art; Pre-auction Estimates; Reservation Price; Bias;
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
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