TY - JOUR
T1 - Colors, Emotions, and the Auction Value of Paintings
AU - Ma, Marshall Xiaoyin
AU - Noussair, Charles N.
AU - Renneboog, Luc
N1 - Funding Information:
The authors are grateful to the Finance Lab at the Shanghai University of Finance and Economics, the CentERlab at Tilburg University, and the Economic Science Laboratory at the Eller College of Management at the University of Arizona for allowing us to conduct our experiment at their facilities. The authors thank Rachel Pownall, as well as Benedict Appelzelders, Te Bao, Jan Bouckaert, Janis Cloos, Fabio Braggion, Alessandra Cassar, Julio Crego, Peter de Goeij, Frank de Jong, Joost Driessen, Sebastian Ebert, Rik Frehen, Jasmin Gider, Gautam Gowrisankaran, Fatemeh Hosseini, Dan Houser, Ferenc Horváth, Keith Joiner, Janis Kloos, Yuexin Li, Hao Liang, Ashley Langer, John List, Liya Liu, Alberto Manconi, Jan Potters, Daniela Puzzello, Yohanes Eko Riyanto, Antonino Emanuele Rizzo, Christophe Schneider, Vernon Smith, Christophe Spaenjers, Oliver Spalt, Sigrid Suetens, Chen Sun, Gijs van de Kuilen, Patrick Verwijmeren, Tan Wang, Xue Xu, Hong Yan, and Yijun Zhou, and seminar and conference participants at Tilburg University, Shanghai University of Finance and Economics, Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University, University Paris-Dauphine, Ghent University, University of Antwerp, University of Arizona, City University of Hong Kong, University of Namur, Singapore Management University, San Jose State University, SFS Cavalcade (Singapore), FMA EU (Glasgow), the North American Economic Science Association, and the Asia-Pacific Society for Experimental Finance Meetings for valuable comments. This study is partially funded by the Tilburg Alumni Fund. The research complies with all laws regarding the participation of human subjects in research studies in all three countries in which the experiments were conducted. All errors are our own.
Funding Information:
The authors are grateful to the Finance Lab at the Shanghai University of Finance and Economics, the CentERlab at Tilburg University, and the Economic Science Laboratory at the Eller College of Management at the University of Arizona for allowing us to conduct our experiment at their facilities. The authors thank Rachel Pownall, as well as Benedict Appelzelders, Te Bao, Jan Bouckaert, Janis Cloos, Fabio Braggion, Alessandra Cassar, Julio Crego, Peter de Goeij, Frank de Jong, Joost Driessen, Sebastian Ebert, Rik Frehen, Jasmin Gider, Gautam Gowrisankaran, Fatemeh Hosseini, Dan Houser, Ferenc Horváth, Keith Joiner, Janis Kloos, Yuexin Li, Hao Liang, Ashley Langer, John List, Liya Liu, Alberto Manconi, Jan Potters, Daniela Puzzello, Yohanes Eko Riyanto, Antonino Emanuele Rizzo, Christophe Schneider, Vernon Smith, Christophe Spaenjers, Oliver Spalt, Sigrid Suetens, Chen Sun, Gijs van de Kuilen, Patrick Verwijmeren, Tan Wang, Xue Xu, Hong Yan, and Yijun Zhou, and seminar and conference participants at Tilburg University, Shanghai University of Finance and Economics, Shanghai Advanced Institute of Finance at Shanghai Jiao Tong University, University Paris-Dauphine, Ghent University, University of Antwerp, University of Arizona, City University of Hong Kong, University of Namur, Singapore Management University, San Jose State University, SFS Cavalcade (Singapore), FMA EU (Glasgow), the North American Economic Science Association, and the Asia-Pacific Society for Experimental Finance Meetings for valuable comments. This study is partially funded by the Tilburg Alumni Fund. The research complies with all laws regarding the participation of human subjects in research studies in all three countries in which the experiments were conducted. All errors are our own.
Publisher Copyright:
© 2021 Elsevier B.V.
PY - 2022/2
Y1 - 2022/2
N2 - We study pricing in the art auction market, focusing on the impact of color composition in non-figurative paintings on hammer prices and willingness-to-pay, by means of both field and laboratory data. Our field data, consisting of art auction prices, reveal a color hierarchy reflected in hammer prices: a one standard deviation increase in the percentage of blue (red) hue triggers a premium of 10.63% (4.20%). We conducted laboratory experiments in the US, China, and Europe, and elicited participants’ willingness-to-pay and measured emotions. We find that blue and red paintings command a premium: blue (red) paintings generate 18.57% (17.28%) higher bids. Color influences prices through the channel of emotional pleasure rather than arousal. Our results are consistent across all three cultures and independent of individual traits such as gender, risk aversion, education and cultural background.
AB - We study pricing in the art auction market, focusing on the impact of color composition in non-figurative paintings on hammer prices and willingness-to-pay, by means of both field and laboratory data. Our field data, consisting of art auction prices, reveal a color hierarchy reflected in hammer prices: a one standard deviation increase in the percentage of blue (red) hue triggers a premium of 10.63% (4.20%). We conducted laboratory experiments in the US, China, and Europe, and elicited participants’ willingness-to-pay and measured emotions. We find that blue and red paintings command a premium: blue (red) paintings generate 18.57% (17.28%) higher bids. Color influences prices through the channel of emotional pleasure rather than arousal. Our results are consistent across all three cultures and independent of individual traits such as gender, risk aversion, education and cultural background.
KW - Auction markets
KW - alternative investments
KW - art investment
KW - cultural economics
KW - experimental economics
UR - http://www.scopus.com/inward/record.url?scp=85122261911&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85122261911&partnerID=8YFLogxK
U2 - 10.1016/j.euroecorev.2021.104004
DO - 10.1016/j.euroecorev.2021.104004
M3 - Article
AN - SCOPUS:85122261911
SN - 0014-2921
VL - 142
JO - European Economic Review
JF - European Economic Review
M1 - 104004
ER -