Bidders can also create their own anchor with a pre-conceived idea. Arriving at an auction thinking“ That‘ 68 Shelby Mustang GT500 should go for R3.9 million” and leaving as the proud owner after a winning bid of R3.7 million would feel like a victory. Paying R4.3 million might bring mixed emotions, even if it’ s an excellent price.
Summer sale
There’ s a seasonal element, too. A paper in the Journal of Behavioural and Experimental Economics examined art auctions in England between 1856 and 1909. They looked for evidence that the weather impacted selling prices of art.
Their main conclusion:“ the amount of daylight on the auction day has a significant positive effect on selling prices in all our model specifications.” They also found some effect on prices based on other elements, including“ precipitation, temperatures, and whether daylight hours are getting longer or shorter.”
The authors acknowledge the unusual nature of the findings.
“ Economic theory predicts that environmental conditions, such as seasons and weather-related factors should not influence the willingness to pay for goods with values that do not vary with these conditions.”
Yet half a century of auction data says otherwise. Regardless, auctioneers in South Africa should struggle with this less than their English counterparts.
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