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DEA meets Picasso: The impact of auction houses on the hammer price

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  • Finn Førsund
  • Roberto Zanola

Abstract

Employing a hedonic price approach within a framework of central tendencies no conclusive results about the impact of auction houses on final prices of art objects have been found. In order to focus on auction houses as a unit we have applied a benchmarking technique, DEA, developed for efficiency studies. New performance indicators are developed and calculated giving an insight into auction house differences impossible to obtain using hedonic price approach. The performance indicators may also be regarded as quality indicators assuming perfect arbitrage leads to the same unobservable quality of art object obtaining the same price. Copyright Springer Science + Business Media, LLC 2006

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  • Finn Førsund & Roberto Zanola, 2006. "DEA meets Picasso: The impact of auction houses on the hammer price," Annals of Operations Research, Springer, vol. 145(1), pages 149-165, July.
    • Handle: RePEc:spr:annopr:v:145:y:2006:i:1:p:149-165:10.1007/s10479-006-0031-x
    DOI: 10.1007/s10479-006-0031-x
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    2. Bronwyn Coate & Tim R.L. Fry, 2012. "Better off Dead? Prices Realised for Australian Paintings Sold at Auction," ACEI Working Paper Series AWP-02-2012, Association for Cultural Economics International, revised Feb 2012.
    3. Dominik Filipiak & Agata Filipowska, 2016. "Towards data oriented analysis of the art market: survey and outlook," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 12(1), pages 21-31, June.
    4. Andrew M. Jones & Roberto Zanola, 2015. "Does the law of one price hold in non-standard investment markets? Why selling picasso in New York is differents," ACEI Working Paper Series AWP-04-2015, Association for Cultural Economics International, revised May 2015.
    5. Víctor Fernández-Blanco & Luis César Herrero & Juan Prieto-Rodríguez, 2013. "Performance of cultural heritage institutions," Chapters, in: Ilde Rizzo & Anna Mignosa (ed.), Handbook on the Economics of Cultural Heritage, chapter 24, pages i-i, Edward Elgar Publishing.

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