Gendered prices

Adams, R. B., Kräussl, R., Navone, M. and Verwijmeren, P. (2021) Gendered prices. Review of Financial Studies, 34(8), pp. 3789-3839. (doi: 10.1093/rfs/hhab046)

Abstract

We provide evidence that culture is a source of pricing bias. In a sample of 1.9 million auction transactions in 49 countries, paintings by female artists sell at an unconditional discount of 42.1%. The gender discount increases with measures of country-level gender inequality—even in artist fixed effects regressions. Our results are robust to accounting for potential gender differences in art characteristics and their liquidity. Evidence from two experiments supports the argument that women’s art may sell for less because it is made by women. However, the gender discount reduces over time as gender equality increases.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Verwijmeren, Professor Patrick
• Authors: Adams, R. B., Kräussl, R., Navone, M., and Verwijmeren, P.
• College/School: College of Social Sciences > Adam Smith Business School > Accounting and Finance
• Journal Name: Review of Financial Studies
• Publisher: Oxford University Press
• ISSN: 0893-9454
• ISSN (Online): 1465-7368
• Published Online: 09 April 2021
• Copyright Holders: Copyright © 2021 The Authors
• First Published: First published in Review of Financial Studies 34(8): 3789-3839
• Publisher Policy: Reproduced in accordance with the copyright policy of the publisher