The pricing of digital art
- The intersection of recent advancements in generative artificial intelligence and blockchain technology has propelled digital art into the spotlight. Digital art pricing recognizes that owners derive utility beyond the artwork’s inherent value. We incorporate the consumption utility associated with digital art and model the stochastic discount factor and risk premiums. Furthermore, we conduct a calibration analysis to analyze the effects of shifts in the real and digital economy. Higher returns are required in a digital market upswing due to increased exposure to systematic risk and digital art prices are especially responsive to fluctuations in business cycles within digital markets.
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| Author: | Yi-Hsuan ChenORCiDGND, Roman KräusslORCiDGND, Patrick VerwijmerenORCiD |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-722913 |
| URL: | https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4694237 |
| DOI: | https://doi.org/10.2139/ssrn.4694237 |
| Series (Serial Number): | CFS working paper series (No. 716) |
| Publisher: | Center for Financial Studies |
| Place of publication: | Frankfurt, M. |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2023 |
| Year of first Publication: | 2023 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2024/01/22 |
| Tag: | Digital art; conspicuous consumption; risk premium; utility dividends; valuation |
| Edition: | December 21, 2023 |
| HeBIS-PPN: | 515657964 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| JEL-Classification: | D Microeconomics / D8 Information, Knowledge, and Uncertainty |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
