International Trade in Art

Abstract

This paper investigates the extent to which trade theory is applicable for explaining trade in art. Reproducible art is distinguished from unique art and it is argued that the trade in reproducible art is, at least in principle, governed by the same economic laws as trade in other differentiated products. However, trade theory needs to be amended in order to account for the addictive character of art consumption: culture specific consumption capital is built up with art consumption. Moreover, trade in unique art is mainly trade between consumers, a phenomenon largely ignored by standard trade theory. Empirical evidence on trade in art is presented and a gravity model of international trade in works of art is estimated. Finally, the paper discusses open questions for future research.