S0607 The Art Market

This is a course that will introduce you to art objects – chiefly paintings – considered as commodities. By that I mean that we will examine art objects for the things of economic interest that attach to the circumstances in which they are made, how they are sold – and bought – and thus priced, whether they are a good investment, and so on. My personal interest is in the historical emergence, functioning and evolution of art markets, but the course may be thought of – for the most part – as a study of selected aspects of the contemporary art market.\r\n

I view markets as arenas of contestation, where participants struggle for competitive advantage. Such advantage is usually temporary, hence the struggle is never won for very long. Looking at markets in this way suggests that they are a game in which the players operate within a structure determined by rules and institutions (the law and enforcement mechanisms, for example). But players also test the limits of what is possible, probing, bending, even going around the rules. We will look at the motivations and typical behaviors of the players in the art market: artists; buyers and collectors; dealers; auction houses; museums; and those who set the laws and shape the rules.

\r\nWe will meet once per week for a lecture-cum-discussion, in which I will take an issue or set of related issues and contextualize and analyze them. Our second meeting will be discussion only, of a piece of literature that you will prepare. Because you will come with varying background knowledge and degrees of economic preparation, usually there will be a selection of readings, at different levels. With help from me, you will choose the level that best suits you. I believe it is just possible to deal with the material in this way, since in economics there are varying levels at which material can be read, and understanding of key ideas and modes of thinking can range from the mathematical to intuitive and verbal. In discussions, therefore, those with more advanced and theoretical grasp will be expected to explain to others in an intuitive way. That is a small imposition, for it also carries benefits to those required to do the explaining. In terms of grading, there will be different expectations in terms of degree of sophistication, according to your capabilities. I am interested to see progress in understanding by each of you, depending on where you started.