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Title: From afternoon to evening: Price dynamics and bidding behaviour in evening auctions for fine art Authors:  Roland Fuess - University of St.Gallen (Switzerland)
Moritz Burkhardt - Universitaet Sankt Gallen (Switzerland)
Christiane Hellmanzik - Technical University of Dortmund (Germany) [presenting]
Abstract: The global auction market continues to deliver extraordinarily high prices for Post-War and Contemporary Art which might be indicative of sentiment-driven behaviour rather than rational investment motives. In order to test this hypothesis, we exploit variation in the timing of auctions to investigate whether an evening auction effect exists. Such an effect captures the tendency of auction participants to condition their price expectations during day auction on the relative price level of preceding evening auctions. Although only weak evidence has been observed of record prices positively affecting subsequent auction results, bidders do perceive a high share of bought-in items as negative pricing signal.