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To fake or not to fake: An empirical investigation on the fine art market

Author

Listed:
  • Antonello E. Scorcu

    (University of Bologna)

  • Laura Vici

    (University of Bologna)

  • Roberto Zanola

    (University of Eastern Piedmont, Institute of Public Policy and Public Choice)

Abstract

Although carefully debated in the legal, aesthetic, and philosophical perspectives, the impact of fakes on the art market has been often overlooked by the economic literature. This paper offers a novel perspective on this issue by investigating the effects of the detection of several Alberto Giacometti’s forged sculptures. Using this exceptional quasi-experiment, the aim of the paper is to analyze whether a specific fake detection persistently influences the prices of a market segment or only exerts a short run effect. The Interrupted Time Series Analysis is adopted to evaluate the impact of fakes across percentiles of the return distribution, accounting for the overall trend in sculpture sales over the period 2000–2015. The empirical evidence shows that in the short run different dynamics emerge across percentiles, but in the medium run fake effects on returns are neutralized.

Suggested Citation

  • Antonello E. Scorcu & Laura Vici & Roberto Zanola, 2021. "To fake or not to fake: An empirical investigation on the fine art market," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(1), pages 143-152, March.
    • Handle: RePEc:kap:jculte:v:45:y:2021:i:1:d:10.1007_s10824-020-09394-0
    DOI: 10.1007/s10824-020-09394-0
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    References listed on IDEAS

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    Cited by:

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    2. Prieto-Rodriguez, Juan & Vecco, Marilena, 2021. "Reading between the lines in the art market: Lack of transparency and price heterogeneity as an indicator of multiple equilibria," Economic Modelling, Elsevier, vol. 102(C).

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    More about this item

    Keywords

    Art fakes; Counterfeiting; Giacometti; ITSA;
    All these keywords.

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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