The effects of gallery and artist reputation on prices in the primary market for art

Susanne Schönfeld and Andreas Reinstaller ()
Additional contact information
Susanne Schönfeld: Department of Economics, Vienna University of Economics & B.A.

Department of Economics Working Papers from Vienna University of Economics and Business, Department of Economics

Abstract: This paper advances a decision theoretical foundation for pricing scripts by means of a simple model of product differentiation implementing the undercut-proof equilibrium concept. We argue that while sociological factors play undoubtedly an important role, economic analysis can complement the insights from economic sociology on pricing in the primary art market. Our model analyzes the effects of the gallery's and the artist's reputation on the price the gallery charges. The results suggest that prices positively correlate with an artist's reputation and negatively correlate with a gallery's reputation. The model may therefore explain the results of recent empirical studies that have led to similar results.

JEL-codes: L11 Z11 (search for similar items in EconPapers)
Date: 2005-05
New Economics Papers: this item is included in nep-com and nep-cul
Note: PDF Document
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.wu-wien.ac.at/inst/vw1/papers/wu-wp90.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.wu-wien.ac.at/inst/vw1/papers/wu-wp90.pdf [301 Moved Permanently]--> https://www.wu.ac.at/inst/vw1/papers/wu-wp90.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwwuw:wuwp090

Access Statistics for this paper

More papers in Department of Economics Working Papers from Vienna University of Economics and Business, Department of Economics Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Department of Economics ().