Determinants of Auction Price on Chinese Art Market

The auction market for Chinese arts expanded exponentially in the past two decades.Holding Chinese arts as an asset has become very profitable, attracting both collectors and investors.This paper investigates the determinants of the artwork’s price. Using art auction data spanning from 1995 to 2014, we adopt the Hedonic pricing model to analyze key factors that influence auction prices on the Chinese art market. Our results show that some of the artwork’s physical characteristics, as well as the location of auction houses, have significant positive impacts on the auction prices.