Vested Interest and Biased Price Estimates: Evidence from an Auction Market

By J. Mei, Michael J. Moses. 2005

126 citations recorded by the source corpus.

Subfields: Finance, Management Science and Operations Research, Visual Arts and Performing Arts

View Paper: https://www.semanticscholar.org/paper/8d1f04a98899652ae73f709688da77595ed24ee2

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Finance

1. Roman Kräussl
2. Benjamin R. Mandel
3. R. Campbell
4. Arthur Korteweg
5. Patrick Verwijmeren

In Management Science and Operations Research

1. Benjamin R. Mandel
2. R. Campbell
3. Patrick Verwijmeren

In Visual Arts and Performing Arts

1. Benjamin R. Mandel
2. R. Campbell

Citations in the corpus

• Art as a Financial Investment (2007, methodology): “oetzmann |1993], and Pesando 119931. Stein [1977] pointed out the selection bias derived from looking only at repeat sales on auction house data; however, average prices also suffer from serious biases in a highly heterogeneous market.”
• Does it Pay to Invest in Art? A Selection-Corrected Returns Perspective (2013, background): “Several prior academic studies examine masterpieces, defined as paintings in the right tail of the price distribution, and generally find that they underperform (Pesando, 1993, Mei and Moses, 2002, 2005), or find mixed effects (Ashenfelter and Graddy, 2003, Pesando and Shum, 2008).”
• Art as an Investment and Conspicuous Consumption Good (2009, background): “11 An alternative explanation for the underperformance of masterpieces is posited by Mei and Moses (2005): auction houses tend to upwardly bias price estimates for high-priced works which correlates with subsequently poor investment returns.”