Sentiment and art prices

Julien Pénasse (1) , Luc Renneboog (2) , Christophe Spaenjers (3)

1 ESSEC Business School
2 CentER
3 GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC

We hypothesize the existence of a slow-moving fad component in art prices. Using unique panel survey data on art market participants' confidence levels in the outlook for a set of artists, we find that sentiment indeed predicts short-term returns.

Keywords: Art; Return predictability; Sentiment; Fads

Julien Pénasse, Luc Renneboog, Christophe Spaenjers. Sentiment and art prices. Economics Letters, 2014, 122 (3), pp.432-434. ⟨10.1016/j.econlet.2014.01.008⟩. ⟨hal-00982427⟩