Experience and Brokerage in Asset Markets: Evidence from Art Auctions

Item Type Monograph (Working Paper)
Abstract

Focusing on the art market, where auction houses act as brokers between art sellers and buyers, we investigate whether more experienced brokers achieve better performance as information providers. We use a unique data set of auctions of Italian paintings in various houses around the world, and we measure experience as the number of times an auctioneer has auctioned the artworks of a certain artist in a given location. We find that more experienced auction houses (i) are more likely to sell and (ii) provide more precise pre-sale estimates. These findings suggest that experience plays an important role for brokers to reduce illiquidity and opacity in markets with asymmetric information.

Authors Bruno, Brunella; García-Appendini, Emilia & Nocera, Giacomo
Language English
Keywords Brokerage, information, experience, art auctions
Subjects business studies
Institute/School s/bf - Swiss Institute of Banking and Finance
HSG Classification contribution to scientific community
Refereed No
Date 2016
Publisher SoF - HSG
Place of Publication St. Gallen
Series Name School of Finance Working Paper Series
Number 2016/05
Depositing User Prof. PhD Emilia García-Appendini
Date Deposited 15 Feb 2016 14:11
Last Modified 23 Aug 2016 11:23
URI: https://www.alexandria.unisg.ch/publications/247407

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Citation

Bruno, Brunella; García-Appendini, Emilia & Nocera, Giacomo: Experience and Brokerage in Asset Markets: Evidence from Art Auctions. School of Finance Working Paper Series, 2016, 2016/05.

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https://www.alexandria.unisg.ch/id/eprint/247407
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