Pricing of collectibles: Baedeker guidebooks
Journal
Economic Modelling
ISSN
0264-9993
ISSN-Digital
1873-6122
Type
journal article
Date Issued
2012-09-01
Author(s)
Erdös, Péter
;
Ormos, Mihaly
Abstract
We analyze the prices of Baedeker guidebooks issued between 1828 and 1945 in the English, French and German languages. We compile a repeat sales regression index of eBay hammer prices, which reveals a common factor in Baedeker guidebook prices. We find mixed evidence on the underperformance of masterpieces (defined as the most expensive guidebooks). No significant difference is found between the average returns of masters and those of non-masters; however, under a five-factor asset-pricing model consisting of Carhart's four factors and the Pástor-Stambaugh liquidity factor, only masterpieces exhibit significant underperformance. The average
price levels of the US, UK and Continental European Baedeker markets do not differ significantly, indicating that the law of one price cannot be rejected. The Baedeker market posts significant negative abnormal returns between 2005 and 2009; however, this result is not found for returns of German-language and non-master guidebooks.
price levels of the US, UK and Continental European Baedeker markets do not differ significantly, indicating that the law of one price cannot be rejected. The Baedeker market posts significant negative abnormal returns between 2005 and 2009; however, this result is not found for returns of German-language and non-master guidebooks.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Elsevier
Publisher place
Amsterdam
Volume
29
Number
5
Start page
1968
End page
1978
Pages
11
Subject(s)
Division(s)
Eprints ID
216205