A Comparative Study of Art Index Methodologies

A Comparative Study of Art Index Methodologies

The art market, a complex and multifaceted domain, necessitates sophisticated methodologies to accurately track and analyze its dynamics. This overview delves into three key methodologies employed in constructing art price indices: the Repeat Sales Regression Method, the Hedonic Regression Method, and the AMR Bespoke Methodology. Each methodology, developed to capture the nuances of art valuation and market trends, comes with its unique set of strengths and limitations, reflecting the intricate nature of art as both cultural artifact and investment asset.

Table of Contents

  1. Methodologies Overview
  2. Challenges in Art Index Creation
  3. Comparative Analysis
  4. Conclusion

Methodologies Overview

Repeat Sales Regression Method (Mei Moses Art Indices)

Developed by Jianping Mei and David Moses, this method, as explained by D'Angelo, focuses on repeat sales data of artworks. It began with a dataset of 4,500 handpicked pairs of sales, expanding significantly over time. The primary advantage is its reliance on actual sales data, offering consistent comparison. However, it is limited by excluding data on non-repeat sales, potentially misrepresenting the market.

Hedonic Regression Method

Employed by Arthena and critiqued by Abdey, this approach predicts artwork values based on attributes like artist, size, medium, and historical price data. Its strength lies in analyzing a broader range of artworks, not limited to repeat sales. However, it introduces subjectivity in attribute selection, leading to potential specification bias.

AMR Bespoke Methodology

Critically analyzed by Abdey, this recent development in art index construction aims to address the limitations of both repeat sales and hedonic regression methods. Using a 'trimmed and smoothed moving average' strategy, it seeks a balanced, comprehensive market analysis. This methodology combines broad market coverage with the objective analysis of actual sales data, striving for a more accurate and representative depiction of the art market.

Challenges in Art Index Creation

One of the most significant challenges in creating art indexes, as highlighted in James S. Abdey's critique, is the heterogeneity of artworks. Each piece of art is unique, making it difficult to standardize data for index creation. This diversity extends to style, artist, era, and other attributes, complicating the comparison of one artwork to another.

Another challenge, underscored by Madelaine D'Angelo, is the infrequency of art sales. Art transactions occur much less frequently than financial trades, leading to a scarcity of data. This is especially true for unique or high-value pieces, which are seldom sold. Such infrequency hampers the ability to develop robust, reliable indices.

Furthermore, both sources emphasize the issue of selection bias, particularly in methodologies like the repeat sales method. Since only a fraction of artworks are resold, and these tend to be either particularly successful or unsuccessful pieces, the data may not be representative of the broader market. This bias suggests that the repeat sales method might skew indices towards certain types or styles of art, potentially misrepresenting overall market trends.

Comparative Analysis

When comparing methodologies, the Mei Moses Indices, as D'Angelo discusses, rely heavily on repeat sales data. This approach, while offering consistency in data comparison, is limited in scope, covering less than 15% of art sales. Such a narrow data pool can skew the market representation and potentially introduce bias.

In contrast, the hedonic regression method, discussed in both sources, analyzes prices based on artwork attributes. This method offers greater predictive power and a more nuanced understanding of market dynamics. However, it is also subject to the subjective selection of attributes and potential specification bias.

The AMR bespoke methodology, as critiqued by Abdey, attempts to address these issues by employing a balanced approach. This method could potentially offer a more representative view of the art market, balancing the accuracy of data with a broader market perspective.

Both sources suggest that no single methodology is without its drawbacks. The Mei Moses Indices, while offering a consistent approach, may miss broader market trends due to their narrow focus. Hedonic regression offers a broader perspective but at the cost of potential subjectivity. While the AMR bespoke methodology seeks to balance these aspects, it too faces challenges in its complex implementation and the need for detailed ongoing analysis.

In conclusion, the choice of methodology has significant implications for both investors and collectors. Investors might prefer a method that captures broader market insights, while collectors may be more interested in the detailed data of specific art categories.


In the realm of art market analysis, no single methodology emerges as the definitive solution. Each approach, whether it's the data-driven precision of the Repeat Sales Regression Method, the broader analytical scope of the Hedonic Regression Method, or the balanced perspective of the AMR Bespoke Methodology, offers valuable insights while contending with inherent limitations. The choice of methodology significantly influences market understanding and investment decisions, highlighting the need for continuous refinement and innovation in art market research to cater to the diverse needs of investors, collectors, and market analysts.


Abdey, J. S. "Critique of Art Price Index Methodologies."

D'Angelo, M. "What Sotheby’s Mei Moses Doesn’t Tell You."

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