Art Price Research Articles

Analysis of Factors Influencing Artwork Pricing

Artworks, as unique commodities, possess both properties and aesthetic value. For consumers, understanding the factors affecting artwork pricing can mitigate the risks associated with market pitfalls. For collectors intending to sell artworks, knowing the factors influencing the pricing of artworks can help them better assess the value of their collections and make more informed decisions on when, where and how to sell. This paper analyzes the influencing factors on art prices from three perspectives: intrinsic attributes of artworks, demand dynamics, and special elements of the art market. Each factor's variation can lead to significant fluctuations in art prices.

The Relationship Between the Development of the Art Industry and the Turnover of Economic Cycles

Abstract: In recent years, the area has grown significantly, creating a trend in art appreciation. This boom has led to a surge in the popularity of museums such as the National Gallery. This project aims to find out more about the economic contribution of art exhibitions. Using advanced time series analysis models including the intervention analysis model and vector autoregressive model, we obtained the following conclusions. First, the positive impact of low levels of economic development and high levels of government expenditure on the arts industry is obvious. Second, the growth of the arts industry has a small impact on most economic indicators. Third, the final impact of GDP on the arts industry is still uncertain due to the complex pattern of the model, with the possibility of a positive correlation with ln (art prices) being observed in the early stages of small GDP growth, while a quadratic pattern may be observed when the GDP index grows above a certain level and art prices fall Conclusion. Further research is needed to investigate the complex relationship between inflation and art prices. Our academic contribution mainly focuses on the multiple-way causal relationships between the economy, art exhibition, tourism, and education, which reveals the underlying mechanism of how art exhibitions promote the economy.

The artification of fossils in commercial art spaces: Dinosaurs in a desirescape

In this article we consider the movement of fossils into art commercial spaces as a process of artification underpinned by the deep object associations that art spaces foster. We combine observational data gathering at art and fossil fairs, dealerships, and auctions with snapshot analysis of the online market for Tyrannosaurus rex fossils, contextualized by interviews with palaeontologists and fossil dealers, to understand the increasing appearance of fossils within art commercial spaces. We believe that the placement of fossils within the art market desirescape, so within a network of alluring, provocative, affective art objects, allows the fossils to transform into what consumers would consider art. The fossils then gain the social associations that artworks have for these consumers. We believe that art and fossil consumers are not simply drawn to individual objects of desire, but to the myriad associations those objects have with other objects and the deep meanings those associations overlay. Those associations and the network they form can, in turn, transform the objects within it. When a fossil is artified, it can be desired like art, and can command art prices.

Art and Markets in the Greco-Roman World

We study art markets in the Greco-Roman world to explore the origins of artistic innovations in classical Greece and the mass production of imitative works in the Roman Empire. Economic factors may have played a role, on one side fostering product innovations when a few rival Greek city-states competed, outbidding each other to obtain higher-quality artworks, and on the other side fostering process innovations when a large integrated market promoted art trade across the Mediterranean Sea. The evidence on art prices is consistent with this. Literary evidence on classical Greek painting from V–III centuries BC (largely from Pliny the Elder) shows that the real price of masterpieces increased up to the peak of creativity reached with Apelles. Epigraphic evidence on Roman sculpture from I–III centuries AD (largely from inscriptions at the base of statues) shows that the real price of statues was stable and largely equalized across the imperial provinces.

Investigating the Role and Impact of Art Management in the Contemporary Art Market

The importance of arts administration is growing as the public's emphasis on arts and culture, quality of life and spiritual needs continue to increase. This paper investigates the functioning and structure of the art market, the important missions of art management, the impact of art management on the contemporary art market, and challenges and future trends in art management. This paper utilizes the literature analysis method to study the collected literature on the current art ecology. This research finds that it is in a stage of development, constantly improving the art price and market mechanism, and is affected by the current social and economic influences. Research has shown that arts management needs to be continuously improved to promote the art market's sustainable development. In addition, the current professional training of art finance talents is still insufficient, to the sustainable development of the market, the education of talents needs to be combined with market practice. Finally, the dominance of market-oriented galleries in the art market makes it difficult for non-integrated or marginalized artists to develop, hence the need for comprehensive measures to promote the all-round development of artists. The sustainable development of the art market requires continuous improvement in arts management and measures to promote the formation of a digitized, diversified, and balanced arts ecosystem.

머신러닝과 통계 모형을 이용한 미술품 가격 예측

The art market is comprised of complex cultural, economic, and social characteristics and has recently received a lot of attention. Art transactions are carried out in a variety of ways, of which art auctions account for a large portion. We collected auction data on Post-War and Contemporary Art artists born after 1920 from Artnet and implemented an art price prediction model. In addition to the hedonic price model commonly used in existing studies, price prediction performance was compared using various machine learning models such as regression model, random effects model, regularization model, tree-based model, and SVM. To compare various machine learning models, RMSE and MAE were compared using two cross-validation methods. As a result, the nonlinear random effects model using author information showed the good performance. The impact of explanatory variables on price was analyzed using the optimal model. In addition, we were able to obtain price curves of various patterns according to the passage of time for each author. Among machine learning models that do not use author information, Bagging showed the best performance. As a result of measuring the importance of variables through Bagging, it was found that the size of the work had the most influence in predicting the price, followed by the artist's year of birth, the method of painting, the material with which the painting was painted, and the year of production.

Art in times of crisis

AbstractWe trace the long‐term performance of the UK art market across a broad set of crises: world wars, economic recessions, financial crises, inflationary periods, and changes in monetary policy. By means of digitalized historical auction archives, we construct art price indices from the early twentieth century onwards and disclose that annual art auction value grew, in real terms, more than seven‐fold over this period. The arithmetic annual real return and risk amount to 3.6 per cent and 20.1 per cent, respectively. Art returns plummeted at the onset of wars, but turned positive in the second half of wars when they outperformed stocks, suggesting that art was seen as a safe haven in times of political turmoil. During wars, smaller – and thus more transportable – paintings obtained higher returns. Art returns are sensitive to economic and financial crises, with the largest slumps occurring during the Great Depression, oil crisis, recessions of the early 1980s and early 1990s, and the Great Recession. We also document changes in art preferences for paintings’ sizes, schools, liquid art, and artists’ nationalities across crises. Art enters a broad optimal asset portfolio both in non‐crisis periods and during war times.

The Impact of the Personal Characteristics of Artists on the Price of Their Contemporary Artworks Based on the Hedonic Model

As an economic model, the Hedonic model can be used to explain the formation of commodity prices and the factors behind it. In the field of art, researchers can also use the Hedonic model to explore the formation mechanism of art prices and its influencing factors. The practical value of artworks is very limited, so their prices are mainly determined by their non-practical value. The non-practical value includes the personal characteristics of the artist, the characteristics of the artwork itself, the auction characteristics of the artwork, and so on. Through the Hedonic model and regression analysis of various explanatory variables that may potentially affect the price of artworks, this paper obtains a number of factors that significantly affect the price of contemporary paintings in terms of the artists personal characteristics. According to the results, it is found that the price of an artwork can be affected by the artists overall reputation, experience, and background, and whether the artist is still alive.

Determinants of Return in the Art Market: Evaluating Art as an Alternative Investment Class

The art market is concerned with the buying and selling of art. The price of art, unlike most other goods, is not set i.e. the price of art is dictated by a plethora of factors with individuals assigning varying values to a piece. Over the last few years, art has grown in popularity as an investment choice. This research paper aims to analyse the art market and further evaluate the unique characteristics of art, such as its low correlation, exclusivity and cultural richness, that make it different to other investment choices. The paper also extensively evaluates the determinants of returns on art investments. The aforementioned is supported by relevant theories and findings from existing literature.

Is art market efficient? Evidence from non-linear quantile unit-root tests

ABSTRACT In this paper, we use quarterly stock price index data to test the weak form of the efficient market hypothesis for 13 art market indices. The fact that hypotheses can be efficiently tested by performing unit root tests is well known. The conventional unit root test results show that most art indices have unit roots, which means that these art markets are efficient. However, the results of the non-linear quantile unit root tests we conduct over a range of quantiles lead us to reject the null of the unit root test for several art markets. To acquire more information, we perform the test over sub-quantile intervals, finding asymmetric market efficiency between the low and high quantile intervals: we cannot reject the unit root null in upper quantile intervals for most art price indices.

Authorship as a determinant of art prices and auction settings in eighteenth-century Paris

Abstract In the context of a booming art market in Paris, eighteenth-century art dealers began to exploit authorship as a value-enhancing strategy. Using Jean-Baptiste Pierre Lebrun’s business as a case study, we show that art dealers purposefully used a firm scale of authentication to create product differentiation and to boost auction dynamics and revenues by reordering the lots before the sale in leaflets known as feuilles de vacation. Our empirical findings support the hypothesis of the development of a market driven by the quest for the artist’s hand in pre-revolutionary Paris, with differential use of connoisseurial knowledge, depending on buyers’ profiles.

Can art hedge against economic policy uncertainty?: New insights through the NARDL model

This paper uses the nonlinear autoregressive distributed lag (NARDL) model to investigate whether art can hedge economic policy uncertainty. We analyze the impact of the global economic policy uncertainty (GEPU) on the global overall art price and the art price indices divided by category and creative period. We find that only Old Masters can hedge against shocks from global economic policy uncertainty in the long-run. The results of this paper have relevant implications to investors and collectors in the art market. Investors and collectors can make more sensible trading and investment strategies based on the level of the economic policy uncertainty in a period of time. When the global economic policy uncertainty rises, investors can pay more attention to Old Masters.

The economics of art: price determinants and returns on investment in Indian paintings

PurposeThe valuation of artworks is challenging since their value encompasses economic, social and cultural values. This study examines two specific questions about the economics of Indian art market: first, the determinants of the price of paintings by Indian artists and second, the risk and return characteristics of investment in Indian paintings. The authors also analyze the role of local context for both questions.Design/methodology/approachThis study uses 8,865 paintings that are auctioned between January, 2000 and June, 2018. A generalized additive model (GAM) is employed to identify the determinants of auction prices and estimate art market price index.FindingsThe results indicate that the price of paintings in the Indian market is impacted by both global and local factors. Consistent with the previous research, this study finds that provenance, literature, living status of an artist, artist reputation, auction house, location and gender determine prices. However, the unique behavior of artwork medium and art movement affiliation in the Indian art market signifies the importance of local context in the valuation of artworks. An analysis of the second aspect of the study, i.e. risk and return characteristics of art investment, suggests that though overall art market returns are not lucrative, there are sub-sections in the market that outperform stocks and other assets. Further, the Indian art market shows a weak or negative correlation with other assets, thus making it a good candidate for a diversified portfolio. One of the important findings of this study is that artworks created by artists associated with the Bombay Progressive Artists' Group (PAG) command a significant price premium over all other artworks. Moreover, the average return on investment in paintings by artists affiliated to the Bombay PAG is not only significantly better than other art movements but also higher than all other art assets.Originality/valueThis study contributes to the growing literature on the economics of art market by providing a comprehensive analysis of the economics of Indian paintings. This research highlights the importance of local factors in price determination and on the risk and return characteristics of art investment. To the best of the authors’ knowledge, it is the most comprehensive study of the economics of Indian painting market and the first study to identify the relationship between Indian art movements and prices of paintings and returns on investment in paintings.

УВЕЛИЧЕНИЕ КУЛЬТУРНОГО КАПИТАЛА ЧЕРЕЗ АКТ ДЕМОНСТРАТИВНОГО ПОТРЕБЛЕНИЯ ПРОИЗВЕДЕНИЙ ИСКУССТВА

The postmodern reinterpretation of values led to the blurring of boundaries between social groups and the diffusion between mass and elitist art. As a result, there was a need to form a new cultural threshold, which was fulfilled by symbolic capital. For a long time, contemporary art could not compete in prices with the works of old masters. However, since the early 2000s, there has been a trend of a rapid increase in prices for contemporary art. This article attempts to analyze this phenomenon, where a work of contemporary art is viewed as a "source" of symbolic capital, and the act of purchase is considered a form of conspicuous consumption, i.e., it is done not for the purpose of enrichment, but for the acquisition of authority and social status. The article proposes the assumption that in the current socio-cultural situation, an increase in symbolic capital can be achieved through the consumption of art. In the space of the modern art market, the artistic value of a work of art and, therefore, the volume of symbolic capital, are inversely proportional to its "accessibility", and the category of artistic value can be substituted with the economic category of price. In addition, the role of the art market in shaping new forms of art is traced. Contemporary artists, like their colleagues in the 1960s, continue to resist the art market. If this protest is fundamentally valuable, it leads to the emergence of new conceptual art practices, such as performance, land art, happening, etc.

Persistence in the passion investment market

Research on the passion investment market is still limited, especially on the issue of persistence. This paper is the first to investigate it using both R/S analysis and fractional integration in the case of 3 fine wine price indices, 10 diamond price indices, 15 art price indices, and 1 stamp price index at the daily, monthly and quarterly frequency. The results can be summarised as follows: wine prices are found to be highly persistent, whilst stamp prices appear to be only weakly persistent, though they can still be characterised as a long-memory process; as for diamond prices, they can be persistent (Diamonds & Gems), anti-persistent (Diamonds Carat indices) or even random (Polished Prices Diamond Index). The dynamic R/S analysis also shows that persistence is time-varying and tends to fluctuate around the average. These findings can be explained by the different degree of liquidity of the assets examined and have implications for both academics investigating market efficiency and practitioners interested in forecasting prices.

Non-fungible token artworks: More crypto than art?

Non-Fungible Tokens (NTFs) artworks attract relevant trading volume in the secondary market. Their prices, primarily denominated in Ethereum cryptocurrency, recently experienced a substantial increase. In this paper, we first investigate whether the market for crypto art is informationally efficient and, secondly, if crypto art can be considered as an alternative to real-world art rather than a haven for crypto-money speculative traders. We find evidence of market inefficiency with long-lasting autoregressive patterns in price discovery. As for the nature of crypto art as an asset class, our findings support the idea that crypto art is unrelated to real-world art. Crypto art prices are mostly determined by gains in the cryptocurrency of denomination, whereas real-world art is mostly unrelated to the financial markets. We conclude that crypto art is far from being another medium to express artistic content and is currently just a storing unit for crypto-money, in absence of relevant alternatives.

Money, possessions, and ownership in the Metaverse: NFTs, cryptocurrencies, Web3 and Wild Markets

Our understandings of money, possessions, and ownership are all changing dramatically as consumption becomes digital and virtual. The Metaverse is an imagined future space where these building blocks of neoliberal production and consumption are delinked. We examine these changes through the affordances of cryptocurrencies, algorithmic collectibles, and NFTs. We seek to disambiguate these efforts at disintermediation through online auctions and speculation. We present practical implications for artists, art institutions, buyers, and investors. We theorize new forms of ownership with fractional ownership and fractionalized property rights. And we seek to understand why some consumers pay astronomical prices for digital art that includes simple and often silly artwork with limited property rights. To do so we distinguish alternate, but sometimes overlapping, buyer motivations in the wild world of crypto art as we purportedly move toward the Metaverse.

A Bayesian dynamic hedonic regression model for art prices

Traditional ordinary least squares (OLS) regressions applied to hedonic pricing models assume that, when using time series, the estimated coefficients for each of the attributes remain constant. We propose a Bayesian dynamic estimation of the hedonic regression model in which the estimated coefficients can be time-varying, demonstrated with an application of art prices. Our dynamic linear regression model overcomes the problems associated with traditional rolling-window based OLS (which represent ad hoc approximations to dynamic estimation), such as under or over-estimation of parameter values and non-adaptive window sizes to account for time-variability. Using a sample of 27,124 paintings sold at auction from 63 Pop-artists (2001–2013), we demonstrate that the estimated coefficients associated with commonly used art attributes fluctuate noticeably through time, and that certain types of artworks and artists might be regarded as “safer” investments (as their art experiences smaller maximum drawdowns), based on price dynamics during the financial crisis (2008–09).

How Crypto Art Prices Are Formed

Over the past decade, blockchain has grown from the original decentralized currency of Bitcoin to a host of applications and platforms competing for user attention. NFTs, as a know-how in the crypto industry, are interesting primarily because they are a finished product that can be easily bought and sold for cryptocurrency. NFT is a ready-made commodity that has value in the digital space, and for creative people it is also a way to earn cryptocurrency by creating their collections.

NFTs and Digital Art

NFTs and Digital Art