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Seasonal affective disorder and seasoned art auction prices: New evidence from old masters

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  • Kliger, Doron
  • Raviv, Yaron
  • Rosett, Joshua
  • Bayer, Thomas
  • Page, John

Abstract

Psychological evidence predicts that environmental conditions such as seasons and weather are associated with mood and the finance literature has documented links between them and daily stock market returns. In this paper we examine how these conditions affect art auction prices in England during 1756–1909. We find that the amount of daylight on the auction day has a significant positive effect on selling prices in all our model specifications. In addition, we find in some specifications direct positive effects stemming from the hours of sunshine during the day, precipitation, temperatures, and whether daylight hours are getting longer or shorter.

Suggested Citation

  • Kliger, Doron & Raviv, Yaron & Rosett, Joshua & Bayer, Thomas & Page, John, 2015. "Seasonal affective disorder and seasoned art auction prices: New evidence from old masters," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 59(C), pages 74-84.
  • Handle: RePEc:eee:soceco:v:59:y:2015:i:c:p:74-84
    DOI: 10.1016/j.socec.2015.10.003
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    References listed on IDEAS

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    1. Doron Kliger & Andrey Kudryavtsev, 2014. "Out of the blue: mood maintenance hypothesis and seasonal effects on investors' reaction to news," Quantitative Finance, Taylor & Francis Journals, vol. 14(4), pages 629-640, April.
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    8. Raviv, Yaron, 2006. "New Evidence on Price Anomalies in Sequential Auctions: Used Cars in New Jersey," Journal of Business & Economic Statistics, American Statistical Association, vol. 24, pages 301-312, July.
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    Cited by:

    1. Gelman, Sergey & Kliger, Doron, 2016. "Time-Induced Stress Effect on Financial Decision Making in Real Markets: The Case of Traffic Congestion," Annual Conference 2016 (Augsburg): Demographic Change 145915, Verein für Socialpolitik / German Economic Association.
    2. repec:eee:respol:v:46:y:2017:i:10:p:1824-1835 is not listed on IDEAS

    More about this item

    Keywords

    Auctions; Weather; Mood; Behavioral economics; Seasonal affective disorder (SAD);

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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