Gendered Prices

94 Pages Posted: 25 Jan 2021

See all articles by Renee B. Adams

Renee B. Adams

University of Oxford; ABFER

Roman Kräussl

Universite du Luxembourg - Department of Finance; Hoover Institution, Stanford University

Marco A. Navone

Finance Discipline Group - UTS Business School; Bocconi University - CAREFIN - Centre for Applied Research in Finance; Financial Research Network (FIRN)

Patrick Verwijmeren

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Date Written: December 10, 2020

Abstract

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

Adams, Renée B. and Kraeussl, Roman and Navone, Marco A. and Verwijmeren, Patrick, Gendered Prices (December 10, 2020). Available at SSRN: https://ssrn.com/abstract=3746124 or http://dx.doi.org/10.2139/ssrn.3746124

Renée B. Adams

University of Oxford ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

ABFER

BIZ 2 Storey 4, 04-05
1 Business Link
Singapore, 117592
Singapore

Roman Kraeussl

Universite du Luxembourg - Department of Finance ( email )

L-1511 Luxembourg
Luxembourg

Hoover Institution, Stanford University ( email )

Stanford, CA 94305
United States

Marco A. Navone (Contact Author)

Finance Discipline Group - UTS Business School ( email )

Haymarket
Sydney, NSW 2007
Australia

Bocconi University - CAREFIN - Centre for Applied Research in Finance

Via Sarfatti, 25
Milan, 20136
Italy

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

Patrick Verwijmeren

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

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