Discoveries of fakes: their impact on the art market
AbstractDespite the dramatic surge in the production of fakes, their impact on the art market remains unexplored. This paper investigates the overall impact that the discovery of a fake painting, for example a fake Gauguin, has on the market for paintings from the same artist (Gauguin’s artworks). Before the fake’s discovery, artworks are less likely to be sold through Sotheby’s or Christie’s suggesting that sellers may wish to avoid their extensive scrutiny. However, when fakes have been discovered sellers rely more often on these auction houses, probably because they are viewed as providing a credible form of certification. Surprisingly, fake discoveries have almost no impact on the probability to sell an artwork. Prices only react negatively with a lag, suggesting that sellers try to postpone their sales as long as possible. Eventually, close to a year after fakes have been made public, prices increase indicating that buyers view the market as purged.
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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 11-023.
Length: 8 p.
Date of creation: Jun 2011
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Other versions of this item:
- Bocart, Fabian & Oosterlinck, Kim, 2011. "Discoveries of fakes: Their impact on the art market," Economics Letters, Elsevier, vol. 113(2), pages 124-126.
- Fabien Bocart & Kim Oosterlinck, 2011. "Discoveries of Fakes: their Impact on the Art Market," ULB Institutional Repository 2013/142704, ULB -- Universite Libre de Bruxelles.
- Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature
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