Estimates, Bias and ``No Sales'' in Latin-American Art Auctions, 1977–1996

Authors: Ekelund Jr. R.B.¹; Ressler R.W.²; Watson J.K.²

Source: Journal of Cultural Economics, Volume 22, Number 1, 1998 , pp. 33-42(10)

Publisher: Springer

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Abstract:

Estimate bias and ``no-sales'' are investigated in the context of Latin American Art auctions conducted in New York between 1977 and 1996. We find that, using a new method for calculating bias, both Sotheby's and Christie's overestimated art (oil-on-canvas pieces) by 2.7 percent. The inclusion of ``no-sales'' raises that proportion to a full one-third of the art traded. Utilizing a binomial probit analysis, moreover, we find that the estimate ``window'' is negatively and significantly related to the likelihood of a ``no sale'' at auction.

Keywords: art auction; Latin American art; bias

Language: English

Document Type: Miscellaneous

Affiliations: 1: Department of Economics, Auburn University, College of Business, 415 W. Magnolia – Room 215, 36849-5242, Auburn, AL, U.S.A. 2: Department of Economics, University of Southwestern Louisiana, Lafayette, LA 70505, U.S.A.

Publication date: 1998-01-01