Arbeitspapier
The winner's curse on art markets
We investigate the effect of overreaction in the fine art market. Using a unique sample of auction prices of modern prints, we define an overvalued (undervalued) print as a print that was bought for a price above (below) its high (low) auction pricing estimate. Based on the overreaction hypothesis, we predict that overvalued (undervalued) prints generate a negative (positive) excess return at a subsequent sale. Our empirical findings confirm our expectations. We report that prints that were bought for a price 10 percent above (below) its high (low) pricing estimate generate a positive (negative) excess return of 12 percent (17 percent) after controlling for the general price movement on the prints market. The price correction for overvalued (undervalued) prints is more pronounced during recessions (expansions).
- Sprache
-
Englisch
- Erschienen in
-
Series: CFS Working Paper Series ; No. 564
- Klassifikation
-
Wirtschaft
Business Fluctuations; Cycles
Portfolio Choice; Investment Decisions
Information and Market Efficiency; Event Studies; Insider Trading
- Thema
-
overreaction
winner's curse
pricing estimates
repeat sale
auction
art market
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kräussl, Roman
Mirgorodskaya, Elizaveta
- Ereignis
-
Veröffentlichung
- (wer)
-
Goethe University Frankfurt, Center for Financial Studies (CFS)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2016
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:24 MESZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Kräussl, Roman
- Mirgorodskaya, Elizaveta
- Goethe University Frankfurt, Center for Financial Studies (CFS)
Entstanden
- 2016
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