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Is the Art Market More Bourgeois Than Bohemian?

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  • Jenny Schuetz
  • Richard K. Green

Abstract

Media and academic attention to the art market has mostly focused on the high end, composed of famous auction houses and a few well-known international dealers. In this paper, we use a newly developed database to examine the industry structure and location patterns of the broader New York art market, which consists largely of small, independent and relatively unknown galleries. We find that Manhattan galleries are highly spatially concentrated, and that clustering reflects both agglomeration economies and preferences over location-specific amenities. As predicted by theories of agglomeration economies, new galleries are more likely to open in neighborhoods with existing gallery clusters, and proximity to other galleries increases firm and establishment lifespan. We also find evidence that new galleries locate in neighborhoods with high population density and more affluent households, consistent with location models of luxury retail. The results are not consistent with the hypothesis that galleries locate in cheap, "bohemian" neighborhoods, as proxied by several demographic and economic variables.

Suggested Citation

  • Jenny Schuetz & Richard K. Green, 2013. "Is the Art Market More Bourgeois Than Bohemian?," Working Paper 18, USC Lusk Center for Real Estate.
  • Handle: RePEc:luk:wpaper:18
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    References listed on IDEAS

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    Cited by:

    1. Jenny Schuettz, 2013. "Do Art Galleries Stimulate Redevelopment?," Working Paper 9121, USC Lusk Center for Real Estate.
    2. Carl Grodach & Nicole Foster & James Murdoch, 2018. "Gentrification, displacement and the arts: Untangling the relationship between arts industries and place change," Urban Studies, Urban Studies Journal Limited, vol. 55(4), pages 807-825, March.
    3. Schuetz, Jenny, 2015. "Why are Walmart and Target Next-Door neighbors?," Regional Science and Urban Economics, Elsevier, vol. 54(C), pages 38-48.
    4. Andersson, Åke E. & Andersson, David Emanuel & Daghbashyan, Zara & Hårsman, Björn, 2014. "Location and spatial clustering of artists," Regional Science and Urban Economics, Elsevier, vol. 47(C), pages 128-137.
    5. Brad Humphreys & Josh Matti, 2018. "The Spatial Distribution of Urban Consumer Service Firms: Evidence from Yelp Reviews," Working Papers 18-03, Department of Economics, West Virginia University.
    6. Kristoffer Moeller, 2018. "Culturally clustered or in the cloud? How amenities drive firm location decision in Berlin," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 728-758, September.
    7. Andersson , Åke E. & Andersson , David E. & Daghbashyan, Zara & Hårsman, Björn, 2013. "Spatial Clustering Of Artists," INDEK Working Paper Series 2013/2, Royal Institute of Technology, Department of Industrial Economics and Management.
    8. Schuetz, Jenny, 2014. "Do art galleries stimulate redevelopment?," Journal of Urban Economics, Elsevier, vol. 83(C), pages 59-72.

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