Template-Type: ReDIF-Paper 1.0
Author-Name: Dakshina Garfield De Silva
Author-Name-First: Dakshina Garfield
Author-Name-Last: De Silva
Author-Name: Marina  Gertsberg
Author-Name-First: Marina 
Author-Name-Last: Gertsberg
Author-Name: Georgia Kosmopoulou
Author-Name-First: Georgia
Author-Name-Last: Kosmopoulou
Author-Name: Rachel Pownall
Author-Name-First: Rachel
Author-Name-Last: Pownall
Title: Dealer Networks in the World of Art
Abstract: We apply network theory to study auction outcomes in the fine art market. Using a unique historical data set, of London-based art auctions that took place between 1741 and 1913, we investigate the drivers of strategic network formation between dealers (buyers) and sellers and the effect of network structure on artwork prices and market exit. The network size and similarities in art specialization between trading partners strongly influence the decision to form links. A larger network and a higher degree of specialization exacerbate informational asymmetries across buyers leading to higher rents through lower prices and facilitate longer market presence.
Creation-Date: 2017
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2017_025.pdf
File-Format: application/pdf
Number: 198144199
Classification-JEL: D44, D82, L14
Keywords: Auctions, Art Dealers, Networks
Handle: RePEc:lan:wpaper:198144199