The Auction Market for Modern Prints: Confirmations, Contradictions, and New Puzzles

11 Pages Posted: 18 Apr 2008

See all articles by James E. Pesando

James E. Pesando

University of Toronto; National Bureau of Economic Research (NBER)

Pauline Shum Nolan

York University - Schulich School of Business

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 Classification: Z11, G11, G14

Suggested Citation

Pesando, James E. and Shum Nolan, Pauline, The Auction Market for Modern Prints: Confirmations, Contradictions, and New Puzzles. Economic Inquiry, Vol. 46, Issue 2, pp. 149-159, April 2008. Available at SSRN: https://ssrn.com/abstract=1120572 or http://dx.doi.org/10.1111/j.1465-7295.2007.00070.x

James E. Pesando (Contact Author)

University of Toronto ( email )

Department of Economics Institute for Policy Analysis
Toronto, Ontario M5S 3E6
Canada
(416)978-8625 (Phone)
(416)978-5519 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Pauline Shum Nolan

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Register to save articles to
your library

Register

Paper statistics

Downloads
4
Abstract Views
993
PlumX Metrics