Anchoring effects in the Chinese art market

Timothy Yang Bian, Jun Huang, Siqi Zhe and Man Zhang

Finance Research Letters, 2021, vol. 43, issue C

Abstract: Using a large auction dataset for traditional Chinese paintings, we test for anchoring effects in the art market. We find that bidders and auctioneers both anchor on past auction prices (which is an externally-provided anchor) and anchoring effects become stronger if time intervals between two auctions of the same paintings are relatively short. When a painting is reauctioned by the same auction house, auctioneers are influenced by both past auction prices (an externally-provided anchor) and auctioneers’ previous estimates (a self-generated anchor). If time intervals between two auctions are relatively short, the influence of the externally-provided anchor prevails over that of the self-generated anchor.

Keywords: Art market; Anchoring effects; Externally-provided anchor; Self-generated anchor (search for similar items in EconPapers)
JEL-codes: D44 Z11 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:43:y:2021:i:c:s1544612321001318

DOI: 10.1016/j.frl.2021.102050

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