Horizontal and vertical differentiation in comic art auctions

Abstract

This study investigates how vertical (quality-related) and horizontal (tasterelated) differentiation influences the probability of sale and market price of auctioned artworks. We explore a new art market, namely, original comic works. By including unsold lots, we correct the selection bias commonly found in the literature. We propose an original set of variables accounting for vertical differentiation in this market (i.e., commercial and critical successes, the artist's reputation, role, and recognition). Vertically differentiated artworks do not sell better, but warrant a premium. Regarding horizontal differentiation, newly explored variables have a significant effect on sales and (often) auction prices.