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Art Appraisal and Value Creation Strategies

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The Economics of Contemporary Art

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Abstract

This chapter analyzes the variables that affect a work of art’s price and deepens our understanding of the economic mechanisms that lead some artists to success and others to failure. This chapter explores how contemporary art markets, or at least a significant element within them, form global contexts featuring buyers and sellers from all over the world, focusing on particular markets to develop the assets that are subject to exchange. This means that price and demand trends in local markets (such as in Italy) is directly influenced by dynamics and rules that belong to other contexts. The most interesting aspect of value creation in contemporary art is the role that asymmetric information plays in this market. The chapter concludes with an analysis of the use of culture as a marketing lever.

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Notes

  1. 1.

    Artprice (2010).

  2. 2.

    There are two types of network effects: direct and indirect. Direct network effects are produced when the number of users adopting the good affects the utility of the individual because he can interact with more people. Fax, telephone, e-mail, software applications grow in value with an increasing network of users. These effects are also called economies of scale on the demand side. Indirect network effects are instead produced when the user’s utility depends not so much from being able to interact with a large number of other users, but rather from the increased attention their product receives, if it is extensively disseminated, by the manufacturers (in this case the artists).

  3. 3.

    Source: Artprice (2010).

  4. 4.

    Source: Grossi (2010).

  5. 5.

    The collection includes among others the works of art by Stefano Arienti, Vanessa Beecroft, Simone Berti, Bruno and Botto, Luca Pancrazi, Eva Marisaldi, Tracey Moffatt, Sol LeWitt, Shirin Neshat, Andres Serrano, Juan Munoz, Cindy Sherman, Cornelia Parker, Nan Goldin, Wolfgang Tillmans, Chen Zen.

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Authors and Affiliations

  1. Institute of Arts, Cultures and Comparative Literature, IULM University, Milan, Italy

    Alessia Zorloni

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  1. Alessia Zorloni
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Correspondence to Alessia Zorloni .

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Zorloni, A. (2013). Art Appraisal and Value Creation Strategies. In: The Economics of Contemporary Art. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-32405-5_4

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  • DOI: https://doi.org/10.1007/978-3-642-32405-5_4

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