Presale Estimates and Auction Prices in Indian Art Market: Accuracy, Determinants and Motivations

Shailendra Gurjar () and Usha Ananthakumar ()
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Shailendra Gurjar: Indian Institute of Technology Bombay
Usha Ananthakumar: Indian Institute of Technology Bombay

Journal of Quantitative Economics, 2023, vol. 21, issue 3, No 4, 555-567

Abstract: Abstract This study examines the accuracy of presale estimates in the auction market for paintings by Indian artists. Based on 3,141 paintings that are auctioned between January 2000 and June 2018, we estimate a multinomial logistic regression to measure the relationship between presale estimates and characteristics of artists, artworks, and auction houses. Our findings suggest that the prices of artworks rarely fall within the low and high estimates. We find that auction houses engage in over/under valuation of artworks; however, their estimation strategy is not uniform. Further, our study indicate that though motivated behavior of auction houses is one of the reasons for erroneous estimates, it is not the only reason. Several other characteristics, such as, artists reputation, movement affiliation of an artist, artwork size and medium, also determine the accuracy of presale estimates.

Keywords: Presale estimates in Art Auctions; Indian Art Market; Cultural Economics; Z11 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s40953-023-00357-8

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