Discoveries of fakes: their impact on the art market
Despite 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.
|Date of creation:||Jun 2011|
|Publication status:||Published by:|
|Contact details of provider:|| Postal: CP114/03, 42 avenue F.D. Roosevelt, 1050 Bruxelles|
Phone: +32 (0)2 650.48.64
Fax: +32 (0)2 650.41.88
Web page: http://difusion.ulb.ac.be
More information through EDIRC
References listed on IDEAS
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.:
- Ginsburgh, Victor & Mei, Jianping & Moses, Michael, 2006. "The Computation of Prices Indices," Handbook of the Economics of Art and Culture, Elsevier.
- Toomet, Ott & Henningsen, Arne, 2008. "Sample Selection Models in R: Package sampleSelection," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 27(i07).
- Collins, Alan & Scorcu, Antonello & Zanola, Roberto, 2009. "Reconsidering hedonic art price indexes," Economics Letters, Elsevier, vol. 104(2), pages 57-60, August.
- Luc Renneboog & Christophe Spaenjers, 2013.
"Buying Beauty: On Prices and Returns in the Art Market,"
INFORMS, vol. 59(1), pages 36-53, February.
- Renneboog, L.D.R. & Spaenjers, C., 2009. "Buying Beauty : On Prices and Returns in the Art Market," Discussion Paper 2009-15, Tilburg University, Center for Economic Research.
- Christophe Spaenjers & Luc Renneboog, 2013. "Buying Beauty: On Prices and Returns in the Art Market," Post-Print hal-00784069, HAL.
- Victor Ginsburgh & David Throsby, 2006. "Handbook of the Eonomics of Art and Culture," ULB Institutional Repository 2013/152412, ULB -- Universite Libre de Bruxelles.
- Victor Ginsburgh & David Throsby, 2006. "Handbook of the economics of art and culture," ULB Institutional Repository 2013/1673, ULB -- Universite Libre de Bruxelles.
- Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-161, January.
- Victor Ginsburgh & Jianping Mei & Michael Moses, 2006. "On the computation of art indices in art," ULB Institutional Repository 2013/7290, ULB -- Universite Libre de Bruxelles. Full references (including those not matched with items on IDEAS)