Explaining The Breadth Of Expert Estimate Ranges In Auctions Of Rare Books
This paper uses data from 3144 rare book auctions to study the breadth of auctioneers’ estimate ranges. The ‘information hypothesis’ proposes that wider ranges reflect greater uncertainty. The ‘reserve hypothesis’ proposes that a narrower range indicates a higher reserve price. The information hypothesis is tested by seeing whether estimate breadths are related to the presence of greater information about likely prices. The reserve hypothesis is tested by seeing whether narrower estimate ranges predict ‘no sales’. Evidence is found in support of the information hypothesis but not the reserve hypothesis. The paper identifies differences between the auction houses Christie’s and Sotheby’s in the estimate strategies they adopt.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 3 8344 5355
Fax: +61 3 8344 6899
Web page: http://www.economics.unimelb.edu.au
More information through EDIRC
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.:
- Victor Ginsburgh & Pierre-Michel Menger, 1996.
"Economics of the Arts: Selected essays,"
ULB Institutional Repository
2013/152420, ULB -- Universite Libre de Bruxelles.
- Luc BAUWENS & Victor GINSBURGH, 2000.
"Art experts and auctions Are pre-sale estimates unbiased and fully informative?,"
Discussion Papers (REL - Recherches Economiques de Louvain)
2000022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- BAUWENS, Luc & GINSBURGH, Victor, . "Art experts and auctions are pre-sale estimates unbiased and fully informative?," CORE Discussion Papers RP -1485, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Victor Ginsburgh & Luc Bauwens, 2000. "Art experts and auctions :are pre-sale estimates unbiased and fully informative," ULB Institutional Repository 2013/152099, ULB -- Universite Libre de Bruxelles.
- Paulo Klinger Monteiro & Flavio Menezes, 1999.
"Synergies and Price Trends in Sequential Auctions,"
9901002, EconWPA, revised 03 Feb 1999.
- Menezes, Flavio Marques & Monteiro, Paulo Klinger, 1999. "Synergies and Price Trends in Sequential Auctions," Economics Working Papers (Ensaios Economicos da EPGE) 360, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
- Menezes, F. & Monteiro, P.K., 1999. "Synergies and Price Trends in Sequential Auctions," Papers 366, Australian National University - Department of Economics.
- Laffont, Jean-Jacques, 1997.
"Game theory and empirical economics: The case of auction data 1,"
European Economic Review,
Elsevier, vol. 41(1), pages 1-35, January.
- Laffont, J.J., 1996. "Game Theory and Empirical Economics: The Case of Auction Data," Papers 95.394, Toulouse - GREMAQ.
- Klemperer, Paul, 1999.
"Auction Theory: a Guide to the Literature,"
CEPR Discussion Papers
2163, C.E.P.R. Discussion Papers.
- Paul Klemperer, 1999. "Auction Theory: A Guide to the Literature," Economics Series Working Papers 1999-W12, University of Oxford, Department of Economics.
- Klemperer, P., 1999. "Auction Theory: a Guide to the Literature," Economics Papers 1999-w12, Economics Group, Nuffield College, University of Oxford.
- Paul Klemperer, 1999. "Auction Theory: A Guide to the Literature," Microeconomics 9903002, EconWPA.
- Paul Milgrom & Robert J. Weber, 1981.
"A Theory of Auctions and Competitive Bidding,"
447R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Beggs, A. & Graddy, K., 1996.
"Declining Values and the Afternoon Effect: Evidence from Art Auctions,"
Economics Series Working Papers
99184, University of Oxford, Department of Economics.
- Alan Beggs & Kathryn Graddy, 1997. "Declining Values and the Afternoon Effect: Evidence from Art Auctions," RAND Journal of Economics, The RAND Corporation, vol. 28(3), pages 544-565, Autumn.
- Engelbrecht-Wiggans, Richard, 1994. "Sequential auctions of stochastically equivalent objects," Economics Letters, Elsevier, vol. 44(1-2), pages 87-90.
- Lusht, Kenneth M, 1994. "Order and Price in a Sequential Auction," The Journal of Real Estate Finance and Economics, Springer, vol. 8(3), pages 259-66, May.
- Stuart Kells, 2002. "The Australian Book Auction Records," Department of Economics - Working Papers Series 830, The University of Melbourne.
- McAfee R. Preston & Vincent Daniel, 1993. "The Declining Price Anomaly," Journal of Economic Theory, Elsevier, vol. 60(1), pages 191-212, June.
- Engelbrecht-Wiggans, Richard & Kahn, Charles M., 1999. "Calibration of a model of declining prices in cattle auctions," The Quarterly Review of Economics and Finance, Elsevier, vol. 39(1), pages 113-128.
- Black, Jane & De Meza, David, 1992. "Systematic Price Differences between Successive Auctions Are No Anomaly," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 1(4), pages 607-28, Winter.
- Ashenfelter, Orley, 1989. "How Auctions Work for Wine and Art," Journal of Economic Perspectives, American Economic Association, vol. 3(3), pages 23-36, Summer.
When requesting a correction, please mention this item's handle: RePEc:mlb:wpaper:873. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aminata Doumbia)
If references are entirely missing, you can add them using this form.