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.
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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.:
- Clare McAndrew & James L Smith & Rex Thompson, 2012. "The impact of reserve prices on the perceived bias of expert appraisals of fine art," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 27(2), pages 235-252, 03.
- repec:pri:cepsud:1212 is not listed on IDEAS
- Orley Ashenfelter & Kathryn Graddy, 2003.
"Auctions and the Price of Art,"
Journal of Economic Literature,
American Economic Association, vol. 41(3), pages 763-787, September.
- Madeleine de la Barre & Sophie Docclo & Victor Ginsburgh, 1994. "Returns of impressionist, modern and contemporary European painters, 1962-1991," ULB Institutional Repository 2013/1723, ULB -- Universite Libre de Bruxelles.
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- Mortensen, Dale T, 1970. "Job Search, the Duration of Unemployment, and the Phillips Curve," American Economic Review, American Economic Association, vol. 60(5), pages 847-62, December.
- Jianping Mei & Michael Moses, 2002. "Art as an Investment and the Underperformance of Masterpieces," American Economic Review, American Economic Association, vol. 92(5), pages 1656-1668, December.
- Goetzmann, William N, 1993. "Accounting for Taste: Art and the Financial Markets over Three Centuries," American Economic Review, American Economic Association, vol. 83(5), pages 1370-76, December.
- Ashenfelter, Orley, 1989. "How Auctions Work for Wine and Art," Journal of Economic Perspectives, American Economic Association, vol. 3(3), pages 23-36, Summer.
- Madeleine DE LA BARRE & Sophie DOCCLO & Victor GINSBURGH, 1994. "Returns of Impressionist, Modern and Contemporary European Paintings 1962-1991," Annales d'Economie et de Statistique, ENSAE, issue 35, pages 143-181.
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