Kräussl, Roman; Mirgorodskaya, Elizaveta - 2020
We investigate the effect of overreaction in the fine art market. Using a unique sample of auction prices of modern … prints, we define an overvalued (undervalued) print as a print that was bought for a price above (below) its high (low …) auction pricing estimate. Based on the overreaction hypothesis, we predict that overvalued (undervalued) prints generate a …
