Sale rates and price movements in art auctions

Orley Ashenfelter, Kathryn Graddy

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

This paper examines the relationship between sale rates and price shocks 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 negative relationship of sale rates to unexpected price shocks, which is reminiscent of a Phillips curve. We estimate an empirical model that suggests that the reserve price is set on average at about 70% of the low estimate.

Original languageEnglish (US)
Pages (from-to)212-216
Number of pages5
JournalAmerican Economic Review
Volume101
Issue number3
DOIs
StatePublished - May 2011

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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