EconPapers    
Economics at your fingertips  
 

Anchoring or Loss Aversion? Empirical Evidence from Art Auctions

Kathryn Graddy (), Lara Loewenstein, Jianping Mei, Mike Moses and Rachel Pownall ()

No 10048, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We find evidence for the behavioral biases of anchoring and loss aversion. We find that anchoring is more important for items that are resold quickly, and we find that the effect of loss aversion increases with the time that a painting is held. The evidence in favor of anchoring and loss aversion with this large dataset validates previous results and adds to the empirical evidence a finding of increasing loss aversion with the length a painting is held. We do not find evidence that investors can take advantage of these behavioral biases.

Keywords: anchoring; art auctions; endowment effect; loss aversion (search for similar items in EconPapers)
JEL-codes: D03 D44 Z11 (search for similar items in EconPapers)
Date: 2014-06
New Economics Papers: this item is included in nep-cul and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=10048 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Anchoring or Loss Aversion? Empirical Evidence from Art Auctions (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:10048

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=10048

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2020-05-02
Handle: RePEc:cpr:ceprdp:10048