Title
A Study of Sale Rates and Prices in Impressionist and Contemporary Art Auctions
Author(s)
Orley Ashenfelte Orley Ashenfelte (Princeton University)
Kathryn Graddy Kathryn Graddy (University of Oxford)
Margaret Stevens Margaret Stevens (University of Oxford)
Abstract
This paper presents a comprehensive study of sale rates and prices in impressionist and contemporary art auctions. Our analysis is based on a detailed dataset of impressionist and modern art auctions and contemporary art auctions. We use this data to estimate and test a "search" model of seller behavior and reserve prices, similar to that developed in the labor economics literature. In our model, we find that the reserve price should be a constant proportion of the estimated price. Furthermore, the reserve price and therefore sales rate, should depend only upon the variance in log prices and the seller's discount rate. We estimate that the secret reserve price is set on average between 70-80% of the low estimate.
Creation Date
2001-12
Section URL ID
Paper Number
2001-6
URL
https://dokumen.tips/documents/a-studyof-sale-rates-andprices-in-impressionist-a-studyof-sale-rates-andprices.html?page=1
File Function
Jel
Z11, D12, D44
Keyword(s)
art, auctions, reserve prices, sale rates
Suppress
false
Series
13