Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/281200 
Year of Publication: 
2023
Series/Report no.: 
CFS Working Paper Series No. 716
Publisher: 
Goethe University Frankfurt, Center for Financial Studies (CFS), Frankfurt a. M.
Abstract: 
The intersection of recent advancements in generative artificial intelligence and blockchain technology has propelled digital art into the spotlight. Digital art pricing recognizes that owners derive utility beyond the artwork's inherent value. We incorporate the consumption utility associated with digital art and model the stochastic discount factor and risk premiums. Furthermore, we conduct a calibration analysis to analyze the effects of shifts in the real and digital economy. Higher returns are required in a digital market upswing due to increased exposure to systematic risk and digital art prices are especially responsive to fluctuations in business cycles within digital markets.
Subjects: 
Digital art
conspicuous consumption
utility dividends
risk premium
valuation
JEL: 
D8
Document Type: 
Working Paper

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