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http://dx.doi.org/10.5762/KAIS.2012.13.10.4432

Artistic Value and Art Price: A Comparison between Auction and Non-auction Markets  

Shin, Hyung-Deok (College of Business Administration, Hongik University)
Kim, Tae-Hwang (Dept. of International Business & Trade, Myungji University)
Kim, Myung-Soo (Dept. of Economics, The Catholic University of Korea)
Kim, Young-Sun (Devision of Design, Myungji University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.13, no.10, 2012 , pp. 4432-4439 More about this Journal
Abstract
Previous studies on art pricing mostly focused on auction data because of the limitation of non-auction market data. This study investigated on both auction and non-auction markets to see the difference in art pricing mechanisms of both markets. Especially, while prior hedonic models included only quantatative variables to predict art prices, we added a qualitative measure, artistic value of a artwork, along with the original hedonic model to develop a more comprehensive model, and tested if his change may make more precise predictions. As a result, when we did not divide our data into auction and non-auction groups, we did not find any significant difference between the original hedonic model and the new model including artistic value. However, when we separated non-auction group from auction group, we found that predicted prices in the new model showed significantly closer values to the actual prices. This study contributes to our knowledge on art pricing by showing that artistic value may have important but differential impacts on different art dealing channels.
Keywords
Art Market; Artistic Value; Hedonic Model; Auction; Non-auction;
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Times Cited By KSCI : 1  (Citation Analysis)
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