The Market for Picasso Prints: A Hybrid Model Approach

Authors: Biey, Marilena¹; Zanola, Roberto²

Source: Journal of Cultural Economics, Volume 29, Number 2, May 2005 , pp. 127-136(10)

Publisher: Springer

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Abstract:

Two basic approaches have been used by the literature focusing on the return to holding artistic works: the hedonic price model and the repeat-sales model. This paper provides a procedure for jointly estimating the two models in a way that take advantages of the unique information contained in each. A semiannual price index for Picasso prints is estimated by using a model derived from the basic framework of the hybrid models. The empirical results suggest that the hybrid model provides the most precisely estimated price index by reducing the level of price volatility.

Keywords: prints; Picasso; hedonic prices; repeat sales; rate of return; hybrid models

Document Type: Research article

DOI: http://dx.doi.org/10.1007/s10824-005-8133-x

Affiliations: 1: Department of Economics, University of Torino, Italy, Email: marilena.locatelli@unito.it 2: Department of Public Policy and Public Choice, University of Eastern Piedmont A. Avogadro, Italy, Email: roberto.zanola@unipmn.it

Publication date: 2005-05-01