IDEAS home Printed from https://ideas.repec.org/a/kap/jculte/v21y1997i2p103-118.html
   My bibliography  Save this article

Credibility and Economic Value in the Visual Arts

Author

Listed:
  • Holger Bonus
  • Dieter Ronte

Abstract

The paper states that the quality of visual arts cannot be measured objectively. An artist must be credible to the public in order to generate economic value. How is credibility and thus economic value generated on the market? To judge the quality of arts, it takes experts. They form a worldwide network relationship and apply cultural knowledge, a highly specific type of knowledge which requires lifelong learning. Cultural knowledge is only in part of a factual nature and includes subjective elements. Since the public cannot in general ascertain the quality of an artist's oeuvre directly, experts must themselves be credible to the public in order to lend credibility to a given oeuvre. It is shown that the process by which experts generate public credibility for a given oeuvre is path dependent, i.e., may by chance end up at inferior solutions. Copyright Kluwer Academic Publishers 1997

Suggested Citation

  • Holger Bonus & Dieter Ronte, 1997. "Credibility and Economic Value in the Visual Arts," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 21(2), pages 103-118, June.
  • Handle: RePEc:kap:jculte:v:21:y:1997:i:2:p:103-118
    DOI: 10.1023/A:1007338319088
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1007338319088
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    2. Goetzmann, William N, 1993. "Accounting for Taste: Art and the Financial Markets over Three Centuries," American Economic Review, American Economic Association, vol. 83(5), pages 1370-1376, December.
    3. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    4. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nela Filimon & Jordi López-Sintas & Carlos Padrós-Reig, 2011. "A test of Rosen’s and Adler’s theories of superstars," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(2), pages 137-161, May.
    2. Susanne Schönfeld & Andreas Reinstaller, 2007. "The effects of gallery and artist reputation on prices in the primary market for art: a note," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(2), pages 143-153, June.
    3. Victor Ginsburgh & Jianping Mei & Michael Moses, 2006. "On the computation of art indices in art," ULB Institutional Repository 2013/7290, ULB -- Universite Libre de Bruxelles.
    4. Velthuis, Olav, 2004. "Exchaning meanings on the market for contemporary art," economic sociology_the european electronic newsletter, Max Planck Institute for the Study of Societies, vol. 5(3), pages 17-27.
    5. Nandini Srivastava & Stephen Satchell, 2012. "Are There Bubbles in the Art Market? The Detection of Bubbles when Fair Value is Unobservable," Birkbeck Working Papers in Economics and Finance 1209, Birkbeck, Department of Economics, Mathematics & Statistics.
    6. Michael Hutter, 1998. "Communication Productivity: A Major Cause for the Changing Output of Art Museums," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 22(2), pages 99-112, June.
    7. Michael Rushton, 2000. "Public Funding of Controversial Art," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(4), pages 267-282, November.
    8. Merijn Rengers & Olav Velthuis, 2002. "Determinants of Prices for Contemporary Art in Dutch Galleries, 1992–1998," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(1), pages 1-28, February.
    9. Ziche, J. & Jositz-Pritscher, I., 1999. "Das Verhältnis von Information, Wissen und Meinungen - dargestellt an der Akzeptanz unterschiedlicher landwirtschaftlicher Nutzungsformen bei nichtlandwirtschaftlicher Bevölkerung," Proceedings "Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.", German Association of Agricultural Economists (GEWISOLA), vol. 35.
    10. Susanne Schönfeld & Andreas Reinstaller, 2005. "The effects of gallery and artist reputation on prices in the primary market for art," Department of Economics Working Papers wuwp090, Vienna University of Economics and Business, Department of Economics.
    11. Bruno, Brunella & Garcia-Appendini, Emilia & Nocera, Giacomo, 2016. "Experience and Brokerage in Asset Markets: Evidence from Art Auctions," Working Papers on Finance 1605, University of St. Gallen, School of Finance.
    12. Erwin Dekker, 2015. "Two approaches to study the value of art and culture, and the emergence of a third," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 39(4), pages 309-326, November.
    13. Michael Hutter & Christian Knebel & Gunnar Pietzner & Maren Schäfer, 2007. "Two games in town: a comparison of dealer and auction prices in contemporary visual arts markets," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 31(4), pages 247-261, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jculte:v:21:y:1997:i:2:p:103-118. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.