Beyond Aesthetics : Asset Pricing Theory and the Scandinavian Art Market

Abstract

This study utilizes a hedonic model to examine factors influencing the pricing of Scandinavian paintings, such as size, artist reputation, and auction house. The analysis focuses on prominent painters from Denmark, Sweden, and Norway from 1991 to 2023, constructing a comprehensive price index. Using this index, we evaluate Scandinavian art as an investment, comparing it to traditional asset classes. Additionally, the study applies the Capital Asset Pricing Model (CAPM) to analyze price movements in the Scandinavian art market and other asset classes. This research contributes to understand the dynamics of the Scandinavian art market and assessing whether it might provide an investment opportunity for art enthusiasts.