The effects of gallery and artist reputation on prices in the primary market for art: a note
This paper advances a decision theoretical foundation for pricing scripts in the primary art market. We argue that while sociological factors play an important role, pricing scripts may well have economic determinants. We use a simple model of product differentiation implementing the undercut proof equilibrium concept to analyse the effects of the gallery’s and the artist’s reputation on the price the gallery charges. The results suggest that prices positively correlate with an artist’s reputation and negatively correlate with a gallery’s reputation. The model may therefore explain similar findings of recent empirical studies on pricing in the primary market for fine art. Copyright Springer Science+Business Media, LLC 2007
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 31 (2007)
Issue (Month): 2 (June)
|Contact details of provider:|| Web page: http://www.springer.com|
Web page: http://www.culturaleconomics.org/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/journal/10824/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adler, Moshe, 1985. "Stardom and Talent," American Economic Review, American Economic Association, vol. 75(1), pages 208-212, March.
- Gerard-Varet, Louis-Andre, 1995. "On pricing the priceless: Comments on the economics of the visual art market," European Economic Review, Elsevier, vol. 39(3-4), pages 509-518, April.
- 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.
- 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.
- 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.