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Private pricing in the art market

Author

Listed:
  • Francesco Angelini

    (Department of Statistics, University of Bologna)

  • Massimiliano Castellani

    (Department of Statistics, University of Bologna)

Abstract

This note investigates price-formation mechanisms at work in the private art market. An analysis is provided on pricing of new artwork for the first sale. In a model with five different types of agents using a bargaining game approach, the artist's preferred market channel is identified. The bargaining power of each agent emerges as the key element. This setting is also an ideal framework to test public interventions to support one or more agents and channels in the art market, such as Artist Re-sale Rights.

Suggested Citation

  • Francesco Angelini & Massimiliano Castellani, 2018. "Private pricing in the art market," Economics Bulletin, AccessEcon, vol. 38(4), pages 2371-2378.
    • Handle: RePEc:ebl:ecbull:eb-18-00264
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    File URL: http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I4-P216.pdf
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    References listed on IDEAS

    as
    1. Jeremy Bulow & Paul Klemperer, 2009. "Why Do Sellers (Usually) Prefer Auctions?," American Economic Review, American Economic Association, vol. 99(4), pages 1544-75, September.
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    Cited by:

    1. Angelini, Francesco & Castellani, Massimiliano, 2022. "Price and information disclosure in the private art market: A signalling game," Research in Economics, Elsevier, vol. 76(1), pages 14-20.
    2. Lee, Boram & Fraser, Ian & Fillis, Ian, 2022. "To sell or not to sell? Pricing strategies of newly-graduated artists," Journal of Business Research, Elsevier, vol. 145(C), pages 595-604.
    3. Francesco Angelini & Massimiliano Castellani & Lorenzo Zirulia, 2022. "Overconfidence in the art market: a bargaining pricing model with asymmetric disinformation," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(3), pages 961-988, October.

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    More about this item

    Keywords

    bargaining; pricing; cultural economics; art market;
    All these keywords.

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

    Statistics

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