The Impact of Media on Price Paid for Thoroughbred Horses at Auction

Abstract

It has been said a picture is worth a thousand words, but the economic value of that picture for livestock sales transactions has not been quantified. The objective of this study aimed to evaluate the effect of the presence of media (photos and/or video) on sale prices of Thoroughbreds. Online auction sale data from two U.S. Thoroughbred auction sites were used to compare 18,221 horses that sold and 4,215 horses that failed to meet the minimum desired bid. Sellers that provided media of their horses at auction received approximately $25,000 more for weanlings, $74,000 more for yearlings, and $89,500 more for older horses versus horses without media representation. Additionally, sellers increased their ability to receive a desired sale price for their horse when media was available for prospective buyers. In conclusion, availability of media prior to sale at auction will result in a greater sale price at every life stage.