1,721,023 research outputs found
Art return rates from old master paintings to contemporary art
Full text linkWe study return rates on art investment using a complete dataset on repeated sales for Old Master
Paintings, Modern art and Contemporary art auctioned worldwide at Christie's and Sotheby's from
2000 to 2018. We show that return rates do not depend systematically on past prices or the place of
sale, but we emphasize substantial differences in returns across sectors. We also control for changes in
transaction costs (buyers' premiums and artists' resale rights), characteristics of the sale (evening sales,
price guarantees and past bought-ins) and news on the lots (changed attributions, public exhibitions or
death of the author) that appear reflected in art returns. We confirm the absence of masterpiece effects
in American, Chinese and Ethnic art. Finally, using historical data on prices during Renaissance,
Baroque and Neoclassical periods, we find evidence that price changes are independent from initial
prices also in the long run
Endogenous Market Structures and Contract TheoryTheory: Delegation, Principal-Agent Contracts, Screening, Franchising and Tying
No full textI study the role of unilateral strategic contracts for firms active in markets with price competition and endogenous entry. Traditional results change substantially when the market structure is endogenous rather than exogenous. They concern (1) contracts of managerial delegation to non-profit maximizers, (2) incentive principal-agent contracts in the presence of moral hazard on cost-reducing activities, (3) screening contracts in case of asymmetric information on the productivity of the managers, (4) vertical contracts of franchising in case of hold-up problems and (5) tying contracts by monopolists competing also in secondary markets. Firms use always these contracts to strengthen price competition and manage to obtain positive profits in spite of free entry
Some Thoughts on the Sutton Approach
No full textI analyze the relation between market size and number of firms when an endogenous number of firms chooses the market strategy and (simultaneously or sequentially) an R&D investment. I generalize the linear Cournot model with an endogenous cost-reducing activity and show that, as long as exogenous fixed costs are positive, the market structure is naturally characterized by an inverted-U relation between market size and number of firms, in line with the celebrated hypothesis of Sutton. However, the increase of the market size reduces the prices and expands individual investment and production exactly as in endogenous market structure only with exogenous fixed costs. © 2013 Springer-Verlag Wien
The Theory of Endogenous Market Structures
No full textMost market structures are neither perfectly or monopolistically competitive: they are characterized by a few large firms that are engaged in strategic interactions in their production and investment decisions and whose number is endogenous. The theory of endogenous market structures analyzes markets in partial and general equilibrium where strategies affect entry and entry affects strategies, and exogenous primitive conditions on technology and preferences affect the equilibrium. We discuss applications to industrial organization, international trade, business cycle theory, international finance, growth and implications for welfare and for competition, trade, fiscal and monetary policy
Pricing to Market in the Krugman Model
No full textWe examine the role of per capita income in closed and open economy models of monopolistic competition based on non-homothetic directly additive preferences a la Dixit-Stiglitz. As in Krugman (1979), In a closed economy with free entry income is always neutral on markups and firm size, In a two-country trade model without transport costs. Markups are higher in the country with higher income if the elasticity of substitution is decreasing in consumption, Pricing to market also emerges with transport costs
Demand, Markups and the Business Cycle. Bayesian Estimation and Quantitative Analysis in Closed and Open Economies
No full textWe generalize the demand side of a Real Business Cycle model introducing non-homothetic preferences over differentiated final goods. Under monopolistic competition this generates variable markups that depend on the level of consumption. We estimate a flexible preference specification through Bayesian methods and obtain countercyclical markups. The associated closed-economy model magnifies the propagation of shocks (compared to perfect competition or fixed markups) through additional substitution effects on labor supply and consumption. In an open-economy framework, it also generates positive comovements of output, labor and investment and reduces consumption correlation between countries: in particular, a positive shock in the Home country reduces its markups and improves its terms of trade, which promotes consumption in the Home country but also production in the Foreign country to exploit the increased profitability of exports
Power-laws in art
Full text linkWe provide evidence of a cubic law of art prices that hints to a general pattern for the distribution of artistic talent. The persistence across heterogeneous markets from historical ones to contemporary art auctions of a power law in the distribution of the average price per artist suggests the possibility of a universal law for talent distribution. We explore scale-free networks of teacher–students to investigate the diffusion of talent over time
Art collections and taste in the Spanish Siglo de Oro
Full text linkWe analyze art pricing in a unique dataset on Madrid inventories between 1600 and 1750. Hedonic regressions reveal a number of interesting facts about the taste of Baroque Spanish collectors and the imports of foreign paintings. The hedonic price index shows an impressive increase in the price of paintings (relative to the cost of living) during the XVII century, in line with the Lopez hypothesis for which investment in art increases in wealthy societies without new productive investment opportunities. We examine price differentials between domestic and imported paintings: at the beginning of the century local works were priced substantially below imported paintings, but the price gap is gradually reduced during the century, with an increasing contribution of the younger painters. This is in line with a Schumpeterian hypothesis for which increasing demand induced increasing domestic quality, as priced by the market, and created the conditions for what is known as the Siglo de Oro of Spanish art
- …
