Study On The External Effect Factors Of Art Auction Prices

In recent years, because of the continuous development and standardization of artmarket, art investment has been commonly accepted by investors. The funds, pledge,mortgages, trusts," stocks " and other investment products of artwork emerged oneafter another, and the price of artworks has become a weather vane of the investmentof the associated financial products, attracting more and more investors’ attention. Inthe overall structure of China’s art market, gallery is the primary market, but itsposition and strength is inferior to the secondary market—auction house. Artauction industry is predominant in art market, so the transaction price has naturallybecome a market guide for the price of artworks. Therefore, it’s of theoretical andpractical significance to make an analysis of the factors influencing the auction prices,especially a dynamic analysis, and combine with the impact of external factors on theauction prices to build a complete model of art pricing.On the existing research of art prices, this paper will make a detailed analysisfrom both the qualitative and quantitative aspects, forming a theoretical foundationfor model establishment. Meanwhile, there will be basic knowledge of art market,explaining the several forms of art price and art trading, and then the introduction offamous representatives of auction company, combing the history of China’s art auctionmarket in detail. The dynamic price model in this paper sets price from three level,first is artwork level, using the last auction price as an attribute; second is agencylevel, representing by the auction company’s credit rating score indicators; third is themarket level, of which the index is the auction market index and a measure of nationalmacroeconomic trends narrow money supply(M1).The empirical results show that:(1)The auction price of every artwork last time as a standard of this time, is the factorwhich has the greatest influence on the auction price this time.(2) The auctioncompany ’s credit rating score has a positive effect on the final transaction price ofartwork, that is to say the higher the score, the higher the price. Thus, the auctioncompany by standardizing their business and improving their rating score caninfluence the price of artwork.(3) The last auction market index has a positive effecton the prices of the artworks in this auction.(4) When increasing the narrow moneysupply in the market, the auction price will go up. Therefore, the economy willimprove the development of the art auction market, giving birth to a large number of high-priced auction, but also easily lead to an unhealthy competition between theauction companies, which requires our country to strengthen the management of artauction market and effectively suppress mock auction, clap leave and otherphenomena.