Price determinants of non-fungible tokens in the digital art market

Florian Horky, Carolina Rachel and Jarko Fidrmuc

Finance Research Letters, 2022, vol. 48, issue C

Abstract: While the traditional art market stagnates, the digital art market is booming partially due to its connection with non-fungible tokens, which allow any unique goods to be mapped in a digital environment. Using unique individual data from the online art NFTs marketplace SuperRare, we combine econometric tools with recent machine learning approaches. This approach allows us to define explanatory variables out of the NFTs descriptions for our Hedonic pricing approach. Using these variables, we are able to show that our Hedonic pricing models exhibit relevant informational value for NFTs prices. Moreover, we show that NFTs cannot be viewed as a simple derivative of cryptocurrencies.

Keywords: Digital art; Non-fungible tokens; Hedonic prices; Lasso regression (search for similar items in EconPapers)
JEL-codes: E31 L86 N20 Z11 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322002495

DOI: 10.1016/j.frl.2022.103007

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