Failure to Meet the Reserve Price: The Impact on Returns to Art.
This paper presents an empirical study of paintings that have failed to meet their reserve price at auction. In the art trade it is often claimed that when an advertised item goes unsold at auction, its future value will be affected. We have constructed a new dataset specifically for the purpose of...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
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Department of Economics (University of Oxford)
2006
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| _version_ | 1797051831969382400 |
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| author | Beggs, A Graddy, K |
| author_facet | Beggs, A Graddy, K |
| author_sort | Beggs, A |
| collection | OXFORD |
| description | This paper presents an empirical study of paintings that have failed to meet their reserve price at auction. In the art trade it is often claimed that when an advertised item goes unsold at auction, its future value will be affected. We have constructed a new dataset specifically for the purpose of testing this proposition. To preview our results, we find that paintings that come to auction and failed return significantly less when they are eventually sold than those paintings that have not been advertised at auction between sales. These lower returns may occur because of common value effects, idiosyncratic downward trends in tastes, or changes in the seller’s reserve price. |
| first_indexed | 2024-03-06T18:24:58Z |
| format | Working paper |
| id | oxford-uuid:07a1d314-e0b2-44af-a10d-7fd24a5842d0 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T18:24:58Z |
| publishDate | 2006 |
| publisher | Department of Economics (University of Oxford) |
| record_format | dspace |
| spelling | oxford-uuid:07a1d314-e0b2-44af-a10d-7fd24a5842d02022-03-26T09:08:37ZFailure to Meet the Reserve Price: The Impact on Returns to Art.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:07a1d314-e0b2-44af-a10d-7fd24a5842d0EnglishOxford University Research Archive - ValetDepartment of Economics (University of Oxford)2006Beggs, AGraddy, KThis paper presents an empirical study of paintings that have failed to meet their reserve price at auction. In the art trade it is often claimed that when an advertised item goes unsold at auction, its future value will be affected. We have constructed a new dataset specifically for the purpose of testing this proposition. To preview our results, we find that paintings that come to auction and failed return significantly less when they are eventually sold than those paintings that have not been advertised at auction between sales. These lower returns may occur because of common value effects, idiosyncratic downward trends in tastes, or changes in the seller’s reserve price. |
| spellingShingle | Beggs, A Graddy, K Failure to Meet the Reserve Price: The Impact on Returns to Art. |
| title | Failure to Meet the Reserve Price: The Impact on Returns to Art. |
| title_full | Failure to Meet the Reserve Price: The Impact on Returns to Art. |
| title_fullStr | Failure to Meet the Reserve Price: The Impact on Returns to Art. |
| title_full_unstemmed | Failure to Meet the Reserve Price: The Impact on Returns to Art. |
| title_short | Failure to Meet the Reserve Price: The Impact on Returns to Art. |
| title_sort | failure to meet the reserve price the impact on returns to art |
| work_keys_str_mv | AT beggsa failuretomeetthereservepricetheimpactonreturnstoart AT graddyk failuretomeetthereservepricetheimpactonreturnstoart |