Private value components, and the winner's curse in an art index
研究艺术品的私人价值成分是否导致买家支付过高，将其建模为一种“赢家诅咒”，并通过修正的重复销售回归分解时间回报和私人价值回报，发现私人价值回报可能显著为正。
Does the private value component of art induce buyers to overpay for paintings? We model this as a type of ‘winner's curse’. Private values imply that prices depend upon the potential number of bidders, a number which declines immediately following a sale. A modified repeat sales regression allows for both temporal and private value returns to painting investments. The temporal component represents the evolving capital appreciation of a painting through time. The private value component originates from changes in the maximum private valuation through time. Preliminary results of this return decomposition indicate that the private value return may be significant and positive. The paper explores the further implications of a private value return, including its possible biassing effect upon the capital appreciation index resulting from the repeat sales regression.