TY  - UNPD
A1  - Kräussl, Roman
A1  - Mirgorodskaya, Elizaveta
T1  - The winner's curse on art markets
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 564
N2  - 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).
T3  - CFS working paper series - 564 
KW  - overreaction
KW  - winner's curse
KW  - pricing estimates
KW  - repeat sale
KW  - auction
KW  - art market
Y1  - 2017
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/42746
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-427461
UR  - https://www.ifk-cfs.de/fileadmin/downloads/publications/wp/2016/CFS_WP_564.pdf
IS  - September 2016
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -