Analysis of the Factors that Influence Hammer Price in Artwork Auction——Based on Hedonic Price Model and Televised Auction Data

Abstract

Abstract:

One after another astonishing hammer price has been announced from China's artwork auction market over the decades since the market resumed its development. This paper applies Hedonic Price Method to reveal the relationship between artwork attributes and implicit prices on the basis of auction bidding prices obtained from televised auctions. Furthermore, it estimates the influences on hammer prices from some particular aspects, including attributes of auctions, characteristics of clients and auctioneers. The results indicate that the internal attributes of artwork have no significant effects on its final price; and compared with others, the confidence of principals, expected prices and positive directions of auctioneers have significant correlations with final price. Moreover, three key factors, i.e. expected prices, male bidders and specialization degrees of bidders, contribute positively to the consistence between hammer prices and reference prices and minimize the risk of price over-estimation. Finally, there is a dramatic influence on the expected prices from confidence degree and the gender of client.

Key words: biding transaction price, artwork attributes, Hedonic Price Method, implicit price, marginal willingness to pay

Li Yanxi, Sun Wenzhang, Zhu Jiawei. Analysis of the Factors that Influence Hammer Price in Artwork Auction——Based on Hedonic Price Model and Televised Auction Data[J]. , 2019, 31(10): 142-152.

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