Failure to meet the reserve price: the impact on returns to art
AbstractThis paper presents an empirical study of paintings that have failed to meet their reserve price at auction. In the art trade it is often claimed that when an advertised item goes unsold at auction, its future value will be affected. We have constructed a new dataset specifically for the purpose of testing this proposition. To preview our results, we find that paintings that come to auction and failed return significantly less when they are eventually sold than those paintings that have not been advertised at auction between sales. These lower returns may occur because of common value effects, idiosyncratic downward trends in tastes, or changes in the seller`s reserve price.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Cultural Economics.
Volume (Year): 32 (2008)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100284
D44; L82; Reserve prices; Burning; Bought-in; Art; Auctions;
Other versions of this item:
- Beggs, Alan & Graddy, Kathryn, 2006. "Failure to Meet the Reserve Price: The Impact on Returns to Art," CEPR Discussion Papers 5811, C.E.P.R. Discussion Papers.
- Alan Beggs & Kathryn Graddy, 2006. "Failure to Meet the Reserve Price: The Impact on Returns to Art," Economics Series Working Papers 272, University of Oxford, Department of Economics.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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