TY - JOUR
T1 - Ordering, revenue and anchoring in art auctions
AU - Hong, Harrison
AU - Kremer, Ilan
AU - Kubik, Jeffrey D.
AU - Mei, Jianping
AU - Moses, Michael
N1 - Publisher Copyright:
© 2015, RAND.
PY - 2015/3/1
Y1 - 2015/3/1
N2 - We estimate the effect of ordering by value on revenues in sequential art auctions held by Sotheby's and Christie's. We exploit a pre determined rotation of which of these two houses holds their auction first during auction week in New York City. When the house that goes first has relatively expensive paintings compared to the other house, we find that the sale premium for the week is around 21% higher relative to the mean sale premium, and the fraction of paintings sold during the week is around 11% higher. We provide evidence that this is due to an anchoring effect.
AB - We estimate the effect of ordering by value on revenues in sequential art auctions held by Sotheby's and Christie's. We exploit a pre determined rotation of which of these two houses holds their auction first during auction week in New York City. When the house that goes first has relatively expensive paintings compared to the other house, we find that the sale premium for the week is around 21% higher relative to the mean sale premium, and the fraction of paintings sold during the week is around 11% higher. We provide evidence that this is due to an anchoring effect.
UR - http://www.scopus.com/inward/record.url?scp=84922563877&partnerID=8YFLogxK
U2 - 10.1111/1756-2171.12081
DO - 10.1111/1756-2171.12081
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AN - SCOPUS:84922563877
SN - 0741-6261
VL - 46
SP - 186
EP - 216
JO - RAND Journal of Economics
JF - RAND Journal of Economics
IS - 1
ER -