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Understanding the artwork pricing: some theoretical models

Author

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  • Francesco Angelini

    (Department of Statistics, University of Bologna, Italy)

  • Massimiliano Castellani

    (Department of Statistics, University of Bologna, Italy; The Rimini Centre for Economic Analysis)

Abstract

This paper analyses the pricing of new artworks sold for the first time in the private art market, investigating price-formation mechanisms at work. Using a bargaining game approach, we find that the bargaining power of each agent is key in identifying the market channel preferred by the artist and, then, her incentive in creating a new artwork.

Suggested Citation

  • Francesco Angelini & Massimiliano Castellani, 2017. "Understanding the artwork pricing: some theoretical models," Working Paper series 17-25, Rimini Centre for Economic Analysis, revised Mar 2018.
    • Handle: RePEc:rim:rimwps:17-25
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    References listed on IDEAS

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    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

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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Z11 - Other Special Topics - - Cultural Economics - - - Economics of the Arts and Literature

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