Sale Rates and Price Movements in Art Auctions
AbstractThis paper examines the relationship between sale rates and price shocks in art auctions. Using data on contemporary and impressionist art, we show that while sale rates appear to have little relationship to current prices, there exists a strong negative relationship of sale rates to unexpected price shocks, which is reminiscent of a Phillips curve. We estimate an empirical model that suggests that the reserve price is set on average at about 70% of the low estimate.
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Bibliographic InfoPaper provided by Brandeis University, Department of Economics and International Businesss School in its series Working Papers with number 23.
Length: 13 pages
Date of creation: Jan 2011
Date of revision:
Other versions of this item:
- Orley Ashenfelter & Kathryn Graddy, 2011. "Sale Rates and Price Movements in Art Auctions," Working Papers 1294, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Orley C. Ashenfelter & Kathryn Graddy, 2011. "Sale Rates and Price Movements in Art Auctions," NBER Working Papers 16743, National Bureau of Economic Research, Inc.
- Ashenfelter, Orley C & Graddy, Kathryn, 2011. "Sale Rates and Price Movements in Art Auctions," CEPR Discussion Papers 8219, C.E.P.R. Discussion Papers.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-05 (All new papers)
- NEP-BEC-2011-02-05 (Business Economics)
- NEP-CUL-2011-02-05 (Cultural Economics)
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.:
- Orley Ashenfelter & Kathryn Graddy, 2003.
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"Art Market Inefficiency,"
ULB Institutional Repository
2013/145737, ULB -- Universite Libre de Bruxelles.
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