While there are no significant investment characteristics that inhibit art from being considered as an asset, a major hurdle has long been the lack of a systematic measure of its financial performance. Due to its heterogeneity (each piece is different) and its infrequency of trading (the exact...

We provide evidence for the behavioral biases of anchoring and loss aversion in paintings sold at auction. We find that anchoring is more important for items that are resold quickly, and that the effect of loss aversion increases with the time that a painting is held. This evidence contributes...

For centuries, wealthy individuals and institutions have collected and consumed art for aesthetic pleasure. While anecdotal evidence suggests that some artworks have appreciated in value over time, few studies have documented investment returns in art systematically. In this article, we...

Most high-net-worth individuals hold a portion of wealth in residential real estate and some collecting category. Art is the predominate collecting category of high-net-worth individuals, and this paper investigates the general effects of incorporating art as well as the particular effects of...

This study provides an empirical test of the Bolton, Freixas and Shapiro (2012) credit ratings model using data from art auctions. Our empirical work discovers that, despite the fact that art and bonds belong to totally different asset classes, financial intermediaries and investors behave in...

In this paper, we compute residual variance of art prices to examine asset pricing in contemporary art market. Our empirical work shows a few interesting results. First, we discover that the residual variance is significantly and positively related to the average price level achieved by an...