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ART as meta-credence: authentication and the role of experts

Author

Listed:
  • Robert B. Ekelund

    (Auburn University)

  • Richard Higgins

    (Berkeley Research Group)

  • John D. Jackson

    (Auburn University)

Abstract

Authenticity is a perennial issue in art markets. This paper investigates the character of some art identifying it as meta-credence goods and utilizing a formal Bayesian model of how experts (or buyers) play a role in evaluating art works, as suggested in a recent paper by Ginsburgh et al. (J Econ Behav Organ 159:36–50, 2019). Experts or a consensus of experts determines credence status where present and future falsification (in the sense of Karl Popper) is impossible. Credence is always a matter of probabilistic degree, and we define a class of extreme credence goods called meta-credence. Consensus of expert opinion serves as verification in the art world where consensus substitutes for falsification. These opinions are relied on by buyers and the art-loving public. This paper outlines the process that the art expert undergoes to render a verdict on the authenticity of art.

Suggested Citation

  • Robert B. Ekelund & Richard Higgins & John D. Jackson, 2020. "ART as meta-credence: authentication and the role of experts," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 44(1), pages 155-171, March.
    • Handle: RePEc:kap:jculte:v:44:y:2020:i:1:d:10.1007_s10824-019-09354-3
    DOI: 10.1007/s10824-019-09354-3
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    References listed on IDEAS

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    1. Hilger, James & Rafert, Greg & Villas-Boas, Sofia Berto, 2007. "Expert Opinion and the Demand for Experience Goods: An Experimental Approach," CUDARE Working Papers 6055, University of California, Berkeley, Department of Agricultural and Resource Economics.
    2. Victor A. Ginsburgh & Jan C. van Ours, 2003. "Expert Opinion and Compensation: Evidence from a Musical Competition," American Economic Review, American Economic Association, vol. 93(1), pages 289-296, March.
    3. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    4. Michael Rushton, 1998. "The Moral Rights of Artists: Droit Moral ou Droit Pécuniaire?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 22(1), pages 15-32, March.
    5. Victor Ginsburgh & Pierre-Michel Menger, 1996. "Economics of the arts: selected essays," ULB Institutional Repository 2013/1655, ULB -- Universite Libre de Bruxelles.
    6. Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
    7. James Hilger & Greg Rafert & Sofia Villas-Boas, 2011. "Expert Opinion and the Demand for Experience Goods: An Experimental Approach in the Retail Wine Market," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1289-1296, November.
    8. Uwe Dulleck & Rudolf Kerschbamer & Matthias Sutter, 2011. "The Economics of Credence Goods: An Experiment on the Role of Liability, Verifiability, Reputation, and Competition," American Economic Review, American Economic Association, vol. 101(2), pages 526-555, April.
    9. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    10. Stigler, George J., 2011. "Economics of Information," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 35-49.
    11. Ginsburgh, Victor & Radermecker, Anne-Sophie & Tommasi, Denni, 2019. "The effect of experts’ opinion on prices of art works: The case of Peter Brueghel the Younger," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 36-50.
    12. Robert B. Ekelund & Mark Thornton, 2019. "Extreme Credence and Imaginary Goods," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(3), pages 361-371, September.
    13. 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.
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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. 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.
    3. Nicolas Lagios & Pierre-Guillaume Méon, 2021. "Experts, Information, Reviews, and Coordination: Evidence on How Literary Prizes Affect Sales," Working Papers CEB 21-011, ULB -- Universite Libre de Bruxelles.
    4. Kim Oosterlinck & Anne-Sophie Radermecker, 2021. "Regulation or Reputation? Evidence from the Art Market," Working Papers CEB 21-006, ULB -- Universite Libre de Bruxelles.

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    More about this item

    Keywords

    Credence goods; Art experts; Meta-credence; Art authentication;
    All these keywords.

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics

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