Author : Orley Ashenfelter
Publisher :
ISBN 13 :
Total Pages : 13 pages
Book Rating : 4.:/5 (699 download)
Book Synopsis Sale rates and price movements in art auctions by : Orley Ashenfelter
Download or read book Sale rates and price movements in art auctions written by Orley Ashenfelter and published by . This book was released on 2011 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: The failure of many paintings to sell in art auctions indicates the presence of reserve prices set by sellers. This paper examines the relationship between sale rates and price surprises over time in art auctions. Using data on contemporary and impressionist art, we show that while sale rates appear to have little relationship to current prices, there exists a strong positive relationship of sale rates to unexpected aggregate price changes, which is reminiscent of a Phillips curve. As a result, sale rates provide a useful quantity indicator of the strength of the art market. The data also indicate that sale rates revert to â??normalâ?? very quickly following a price surprise. We estimate an empirical model to measure normal sale rates. We also find evidence that the reserve price is set on average at about 70% of the auctioneer's low estimate, as published in the auction catalog