94 Pages Posted: 25 Jan 2021
Date Written: December 10, 2020
We provide evidence that culture is a source of pricing bias. In a sample of 1.9 million auction transactions in 49 countries, paintings by female artists sell at an unconditional discount of 42.1%. The gender discount increases with measures of country-level gender inequality — even in artist fixed effects regressions. Our results are robust to accounting for potential gender differences in art characteristics and their liquidity. Evidence from two experiments supports the argument that women's art may sell for less because it is made by women. However, the gender discount reduces over time as gender equality increases.
Keywords: Law of One Price, Bias, Art, Gender, Auction, Culture, Inequality
JEL Classification: Z11, J16, D44
Suggested Citation: Suggested Citation