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Experience and Brokerage in Asset Markets: Evidence from Art Auctions


Garcia, Emilia; Bruno, Brunella; Nocera, Giacomo (2018). Experience and Brokerage in Asset Markets: Evidence from Art Auctions. Financial Management, 47(4):833-864.

Abstract

Focusing on the art market, where auction houses act as brokers between art sellers and buyers, we investigate whether more experienced brokers achieve better performance as information providers and matchmakers. We find that houses with artist‐specific experience are more likely to achieve a sale and provide more precise pre‐sale estimates. These findings suggest that experience in a specific market segment plays an important role for brokers to reduce illiquidity and opacity in markets with asymmetric information. Our analysis also shows that specific experience matters above and beyond other house‐specific factors, including reputation and market power.

Abstract

Focusing on the art market, where auction houses act as brokers between art sellers and buyers, we investigate whether more experienced brokers achieve better performance as information providers and matchmakers. We find that houses with artist‐specific experience are more likely to achieve a sale and provide more precise pre‐sale estimates. These findings suggest that experience in a specific market segment plays an important role for brokers to reduce illiquidity and opacity in markets with asymmetric information. Our analysis also shows that specific experience matters above and beyond other house‐specific factors, including reputation and market power.

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Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Banking and Finance
Dewey Decimal Classification:330 Economics
Language:English
Date:1 December 2018
Deposited On:20 Dec 2018 09:37
Last Modified:24 Sep 2019 23:57
Publisher:Wiley-Blackwell Publishing, Inc.
ISSN:0046-3892
OA Status:Closed
Free access at:Publisher DOI. An embargo period may apply.
Publisher DOI:https://doi.org/10.1111/fima.12207
Other Identification Number:merlin-id:16289

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