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Does the sun ‘shine’ on art prices?

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Author Info

  • De Silva, Dakshina G.
  • Pownall, Rachel A.J.
  • Wolk, Leonard

Abstract

This paper examines how variation in mood influences subjective risk and hence auction prices for art in London during the period 1990–2007. The private value of an object is closely related to taste and mood which is proxied for by the variation in weather. Using a unique data set that includes presale estimates for paintings sold through Sotheby's and Christie's auction houses as well as weather data for London from the British Atmospheric Data Centre we find that the lower part of the price distribution is populated with paintings with a relative high private value, whereas in the upper part, prices are driven primarily by the common value characteristics. Our findings have important implications for collectors and investors in the art market.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 82 (2012)
Issue (Month): 1 ()
Pages: 167-178

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Handle: RePEc:eee:jeborg:v:82:y:2012:i:1:p:167-178

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Web page: http://www.elsevier.com/locate/jebo

Related research

Keywords: Auctions; Private value; Common value; Mood; Emotions; Cartel;

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References

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Cited by:
  1. Kaustia, Markku & Rantapuska, Elias, 2013. "Does mood affect trading behavior?," SAFE Working Paper Series 4, Research Center SAFE - Sustainable Architecture for Finance in Europe, Goethe University Frankfurt.
  2. Kathryn Graddy & Lara Loewenstein & Jianping Mei & Mike Moses & Rachel Pownall, 2014. "Anchoring or Loss Aversion? Empirical Evidence from Art Auctions," Working Papers 73, Brandeis University, Department of Economics and International Businesss School.

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