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Presale Estimates and Auction Prices in Indian Art Market: Accuracy, Determinants and Motivations

Author

Listed:
  • Shailendra Gurjar

    (Indian Institute of Technology Bombay)

  • Usha Ananthakumar

    (Indian Institute of Technology Bombay)

Abstract

This study examines the accuracy of presale estimates in the auction market for paintings by Indian artists. Based on 3,141 paintings that are auctioned between January 2000 and June 2018, we estimate a multinomial logistic regression to measure the relationship between presale estimates and characteristics of artists, artworks, and auction houses. Our findings suggest that the prices of artworks rarely fall within the low and high estimates. We find that auction houses engage in over/under valuation of artworks; however, their estimation strategy is not uniform. Further, our study indicate that though motivated behavior of auction houses is one of the reasons for erroneous estimates, it is not the only reason. Several other characteristics, such as, artists reputation, movement affiliation of an artist, artwork size and medium, also determine the accuracy of presale estimates.

Suggested Citation

  • Shailendra Gurjar & Usha Ananthakumar, 2023. "Presale Estimates and Auction Prices in Indian Art Market: Accuracy, Determinants and Motivations," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 21(3), pages 555-567, September.
    • Handle: RePEc:spr:jqecon:v:21:y:2023:i:3:d:10.1007_s40953-023-00357-8
    DOI: 10.1007/s40953-023-00357-8
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    References listed on IDEAS

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