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Contemporary Art Markets and Supporting Sectors

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The Economics of Contemporary Art

Abstract

After the previous chapter’s presentation of the system of contemporary art’s production chain, this chapter is devoted to analyzing the industry’s structure and in particular how an offer is researched and made. In this context, the chapter analyzes the main economic aspects of contemporary art markets and identify the different market segments, with the aim of measuring the turnover of the art market at a global level, broken down by intermediaries (galleries and auction houses), techniques (paintings, sculptures, video and photography) and exchanges by territorial classification. Four distinct markets are described: classic contemporary, avant-garde, alternative and junk. Finally, the chapter deals with the European trade in works of art, providing an overview of fiscal asymmetries for import and export.

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Notes

  1. 1.

    Source: Diez (2009).

  2. 2.

    Manifesta is the visual arts exhibition that takes place every 2 years in a different location. Founded in Rotterdam in 1996, has its centre of operations in Amsterdam.

  3. 3.

    Among the most prestigious schools in the international arena, we recall: School of the Museum of Fine Arts; California Institute of the Arts; Cooper Union; Glasgow School of Art; Goldsmiths’ College; Hunter College; Maryland Institute College of Art; Kansas City Art Institute; Parsons School of Design; Rhode Island School of Design; Pratt Institute; the Cranbrook Academy of Art; Royal College of Art; San Francisco Art Institute; School of the Art Institute of Chicago; School of Visual Arts.

  4. 4.

    The Duchamp is organized each year by ADIAF, the Association pour la Diffusion de l’Art International Français, with a value of €35,000, reserved for French artists. http://www.prix-marcel-duchamp.com/

  5. 5.

    The Polar is a prize of €110,000, annually organized by the Royal Swedish Academy of Music and which has rewarded artists of the calibre of Paul Simon (2012), Patti Smith (2011), Björk (2010), Pink Floyd (2008), Gilberto Gil (2005), Keith Jarrett (2003), Stevie Wonder (1999), Ray Charles (1998), Elton John (1995), Quincy Jones (1994).

  6. 6.

    Source: Diez (2009).

  7. 7.

    This type of auction is so called because it is used in the Netherlands to sell flowers. But it is quite common also for other types of goods. Such an auction mechanism was already used in the seventeenth century, as there are records of a catalogue that describes an auction called mineing, very similar to the present-day Dutch auction. The auctioneer marked the beginning of the auction with a high price that was progressively diminishing, until someone shouted ‘mine’ (whence the name of the auction); at this point the auction became ascending and ended with sale to the highest bidder. Even today, Filene’s, a department store in Boston, exhibits goods bearing the date of exposure and the price, and price decreases with increasing the time of storage of the good.

  8. 8.

    See W. Vickrey 1961. This type of auction is also known as Vickrey auction, as introduced in the literature for the Nobel Prize for economics in 1996.

  9. 9.

    In France, in case of English auction, a representative of the Louvre is entitled to exercise an option after the last bid, standing up and saying: ‘préemption de l’État’ (State pre-emption).

  10. 10.

    An additional fee imposed on the buyer, added to the highest bid to determine the total contract price. Normally the fee is a percentage (10–30 %) added onto of the final bid price.

  11. 11.

    Artprice (2010b)

  12. 12.

    Artprice (2010b).

  13. 13.

    Pirrelli (2011b).

  14. 14.

    Pirrelli (2011a).

  15. 15.

    Source for all data Plus24, supplement to Il Sole 24 Ore, 29 January 2011.

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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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Zorloni, A. (2013). Contemporary Art Markets and Supporting Sectors. In: The Economics of Contemporary Art. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-32405-5_3

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  • DOI: https://doi.org/10.1007/978-3-642-32405-5_3

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