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The auction market for artworks and their physical dimensions: Australia—1986 to 2009

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  • Helen Higgs
  • John Forster

Abstract

Within a hedonic pricing model, the preferences of Australian art purchasers are investigated. Emphasis is placed on the impact of an artwork’s dimensions upon its auction price. A salient aspect of this is the first test of the ‘golden ratio’ hypothesis in a market situation. It is concluded that purchasers prefer paintings that deviate from the golden rule. The ‘orientation’ of works (portrait, landscape or square) as well as size also helps determine price. The impact of winning the Archibald portraiture prize (Australia’s foremost art prize) is found to have significant and positive impacts on winning artists’ prices. This suggests that purchasers are not fully informed. In addition, a previously unsuspected relationship between artwork dimensions and Archibald prize winners was found. As well as purchasers’ preferences, the artists’ choices of the dimensions of their artworks are considered. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Helen Higgs & John Forster, 2014. "The auction market for artworks and their physical dimensions: Australia—1986 to 2009," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 85-104, February.
    • Handle: RePEc:kap:jculte:v:38:y:2014:i:1:p:85-104
    DOI: 10.1007/s10824-012-9197-z
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    3. Shailendra Gurjar & Usha Ananthakumar, 2023. "The economics of art: price determinants and returns on investment in Indian paintings," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 50(6), pages 839-859, January.
    4. Shailendra Gurjar & Usha Ananthakumar, 2023. "Presale Estimates and Auction Prices in Indian Art Market: Accuracy, Determinants and Motivations," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 21(3), pages 555-567, September.

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    More about this item

    Keywords

    Hedonic pricing; Artwork dimensions; Archibald prize; C23; C33; G11;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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