1. THE AUCTION MARKET FOR MODERN PRINTS: CONFIRMATIONS, CONTRADICTIONS, AND NEW PUZZLES.
- Author
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PESANDO, JAMES E. and SHUM, PAULINE M.
- Subjects
- *
AUCTIONS , *COMMERCIAL law , *BIDDING strategies , *SALES , *INVESTMENTS , *SELF-interest , *BIDDERS , *BIDS , *SELLING - Abstract
Using a large data set with 80,214 repeat sales, we find that the real return on a diversified portfolio of modern prints sold at auctions worldwide averaged a modest 1.51% during the period 1977–2004. We address several issues regarding the performance of modern prints as investments: the selection bias arising from the self-interest of auction houses; the impact of an ever-expanding universe of auction houses on investment returns; the “masterpiece” effect, or whether more expensive works of art outperform the market as a whole; and the differences in returns that arise due to random fluctuations in collector tastes. ( JEL Z11, G11, G14) [ABSTRACT FROM AUTHOR]
- Published
- 2008
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