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On seller estimates and buyer returns

On seller estimates and buyer returns
On seller estimates and buyer returns
This paper revisits recent empirical research on buyer credulity in arts auctions and auctions for assets in general. We show that elementary results in auction theory can fully account for some stylized facts on asset returns that have been held to suggest that sellers of assets can exploit buyers by providing biased estimates of asset values. We argue that, rather than showing that buyers are credulous, the existing evidence can serve as an indirect test of the rationality assumptions underlying auction theory.
47-55
Gershkov, Alex
214a0b5e-c742-486d-b910-c8ec702c943a
Toxvaerd, Flavio
199a455c-72dc-4956-bd17-a9e85d8bd7d9
Gershkov, Alex
214a0b5e-c742-486d-b910-c8ec702c943a
Toxvaerd, Flavio
199a455c-72dc-4956-bd17-a9e85d8bd7d9

Gershkov, Alex and Toxvaerd, Flavio (2013) On seller estimates and buyer returns. Economic Theory Bulletin, 1 (1), 47-55. (doi:10.1007/s40505-013-0008-2).

Record type: Article

Abstract

This paper revisits recent empirical research on buyer credulity in arts auctions and auctions for assets in general. We show that elementary results in auction theory can fully account for some stylized facts on asset returns that have been held to suggest that sellers of assets can exploit buyers by providing biased estimates of asset values. We argue that, rather than showing that buyers are credulous, the existing evidence can serve as an indirect test of the rationality assumptions underlying auction theory.

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Accepted/In Press date: 15 March 2013
Published date: 30 March 2013

Identifiers

Local EPrints ID: 503683
URI: http://eprints.soton.ac.uk/id/eprint/503683
DOI: doi:10.1007/s40505-013-0008-2
PURE UUID: b7177dce-7437-4491-baab-7e267c25a208
ORCID for Alex Gershkov: ORCID iD orcid.org/0000-0002-6062-8428

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Date deposited: 08 Aug 2025 16:44
Last modified: 22 Aug 2025 02:49

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Author: Alex Gershkov ORCID iD
Author: Flavio Toxvaerd

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