Price Indices for Artists – A Proposal

This paper proposes a price index for artists adjusted for the quality of the paintings, based on the ratio between the average market price and the average pre-sale estimate for paintings. We apply this methodology to a group of selected artists and schools presented in auctions worldwide in the period 1990–2001. A comparison with quality unadjusted and hedonic indices is also conducted.JEL Classification: C10, Z11     

Trust the artist versus trust the tale: performance implications of talent and self-marketing in folk music

Based on a unique dataset of artists that are active in the German market for folk music—the third largest music genre in terms of popularity and sales—I study what factors determine the artists’ success. Following Rosen (Am Econ Rev 71(5):845–858, 1981), I test if differences in artistic performance have a direct effect on financial rewards as regards physical and digital record sales (“direct superstar effect”). Following Adler (Handbook on the economics of art and culture. Elsevier, Amsterdam, 1985), I also study sales effects of a media presence of artists (“classical superstar effect”). Controlling for various contingency factors (e.g., record labels’ support, artists’ socio-demographics), I deal with an economic issue of general interest: Does it pay more to develop your skills in your core business to perfection or to maintain the current level of skills and invest in self-marketing; and do these effects apply to all folk artists alike? Rather contrary to studies on pop and rock genres, I find that higher ability increases artists’ revenues disproportionately, but simultaneously, openly competing for the recognition of one’s talent holds substantial economic risk. I also observe a positive effect of various types of media presence on financial rewards. However, these income determinants have different impacts on sales in physical versus in digital markets, and their effects vary across the success distribution from low- to top-selling artists as well.     

The auction market for artworks and their physical dimensions: Australia—1986 to 2009

Within a hedonic pricing model, the preferences of Australian art purchasers are investigated. Emphasis is placed on the impact of an artwork’s dimensions upon its auction price. A salient aspect of this is the first test of the ‘golden ratio’ hypothesis in a market situation. It is concluded that purchasers prefer paintings that deviate from the golden rule. The ‘orientation’ of works (portrait, landscape or square) as well as size also helps determine price. The impact of winning the Archibald portraiture prize (Australia’s foremost art prize) is found to have significant and positive impacts on winning artists’ prices. This suggests that purchasers are not fully informed. In addition, a previously unsuspected relationship between artwork dimensions and Archibald prize winners was found. As well as purchasers’ preferences, the artists’ choices of the dimensions of their artworks are considered.     

Digitalizing consumer society: equipment and devices of digital consumption

ABSTRACT

This special issue of the Journal of Cultural Economy focuses on the digitalization of consumption and its social, cultural, ethical, political, and gendered implications. It thus answers the call for more research on how digital devices spread from the purely personal domain to multiple sociocultural domains. Through their use, new cultural practices have emerged between consumers and these devices, and devices and markets, that lead to change, in terms of consumer demand, consumption norms, and issues of ethics, culture, and power. Closely examining the role that devices play in consumption behavior enables us to address the supposed manipulative power of hi-tech companies, infrastructures, and systems at the global level, and the view ordinary market actors hold of digital appliances as empowering tools at the local level. The papers in this volume bridge ‘actor network theory' and ‘consumer culture theory' from the perspective of market ‘agencements.’ Ruckenstein-Granroth and Beauvisage-Mellet, and Arriagada-Concha focus on the device-mediated relationship between large digital market infrastructures and consumer behavior; Petersson McIntyre and Licoppe unveil the societal and cultural underpinnings of digitalized markets. Last but not least, Sörum and Soujtis address the political dimensions and implications of our new digital consumer equipment and society.     

Mobile consumers and the retail industry: the resistible advent of a new marketing scene

ABSTRACT

Over the last ten years, marketing professionals have invested in various devices aimed at digitalizing the point of sale. Mobile phones, and the connection they open between the digital and physical worlds, are likely to profoundly renew the way organizations build the representations of consumers upon which they operate. This article aims to describe the new, mobile-based market infrastructure that is currently being implemented; the figures of the consumer it builds on and renews for marketing purposes; and the opportunities it offers to create a new marketing scene. We address this question by focusing on the world of physical retail. We show that online commerce websites and http cookies have enabled a connection between three traditionally separate figures of the consumer and associated marketing scenes: the consumer as an audience, as a shopping cart, or as a (loyalty) card. The smartphone carries the promise of pursuing this movement into store aisles. We show, however, that the domestication of physical geography to cultivate mobile consumers is particularly difficult, and so far based on a series of disparate attempts and experiments.     

In Search of Stylized Facts on Art Market Prices: Evidence from the Secondary Market for Prints and Drawings in Italy

In the paper we develop some price indices for the secondary market forprints and drawings in Italy for the period 1977–1999. Theempirical evidence suggests the emergence of causal links from thepainting series and consumer price series to the print and drawingsprice series. Within the secondary market, the drawings price seriesprecedes the print price series.     

Marketing and the Fine Arts – Inventory of a Controversial Relationship

This study concentrates in part on the market of fine arts. First, fine arts will be defined from a marketing point of view and peculiarities in the market of fine arts will be analysed empirically and theoretically. Certain aspects of marketing theory are discussed regarding their significance for the fine arts. Results of an empirical study of galleries and artists will be presented. It will be shown, whether and how artists are involved in marketing, how successful they are and what prerequisites to marketing the artists have.     

MARKET MORALITIES IN THE FIELD OF COMMERCIAL SEX

The website ‘Punternet’ contains customer service reviews (‘field reports’) of commercial sex encounters in the UK's indoor sex market. Treating Punternet as a calculative device shows how ordinary understandings of morality underpin consumer markets, as field reports qualify commercial sex to produce understandings of ‘good value’. The varied, messy and sometimes contradictory understandings of value, values, worth and goodness that are present in the calculative device of Punternet reveal the complex ways in which market actions are made moral by consumers. ‘Value’ in the market for sex is a moral judgement made by male authors whose understandings of themselves as deserving customers derives from the stories they tell of good and bad service providers. Although the moral status of prostitution is contested by many, Punternet reports lay claim to it being a legitimate consumer activity, with customers themselves vulnerable to being denied ‘value for money’. The good worker is seen as providing value for money by being professional, committed to pleasing the customer and appearing to enjoy her job.     

The new digital face of the consumerist mediator: the case of the ‘Yuka’ mobile app

ABSTRACT

Drawing on Mallard’s contribution [2007. Performance testing: dissection of a consumerist experiment. The sociological review, 55 (2), 152–172] on the work undertaken by consumerist journals to evaluate products independently from the mediation of market players, our goal is to characterize the new digital form of the consumerist mediator by using a specific case: Yuka, a mobile application (app) enabling consumers to obtain alternative health labeling on foodstuffs. Relying on interviews, observations of the app and analysis of underlying product databases and reports on food labeling issues, we examine the new forms of consumer-to-market interactions brought about by the app, the conceptions of health inscribed in its product qualification algorithm and the operation of the database on which it is based. Our position is threefold: firstly, we argue that the relationship between the consumer and the market established by Yuka is less distant than the one established by traditional consumerist mediators. Secondly, in the case of Yuka, we argue that the market relationship is based on a compromise between scientific logic, technological uncertainty and consumer concerns. Thirdly, we claim that this case demonstrates new ways for consumerist prescribers to politically intervene on markets, but that the potential of the intervention is tied to new issues related to the openness of product data.     

A Note on Financial Risk, Return and Asset Pricing in Australian Modern and Contemporary Art

In this note, 30,227 paintings by fifty well-known modern and contemporary Australian artists sold at auction over the period 1973–2003 are used to construct a hedonic price index. The attributes included in the hedonic regression model include the name, age and living status of the artist, the number of works sold, the size and medium of the painting, and the auction house, month and year in which the painting was sold. The results indicate that returns on Australian modern and contemporary art averaged nearly five percent over the period with a standard deviation of sixteen percent. The results also show that a ten percent increase in the Australian stock market is associated with a 3.4 percent increase in the art market. Generally, artworks by artists deceased at the time of auction, larger works, works executed in oils, and those auctioned by Sotheby's or Christies in July or August are associated with higher prices.     

Age–price profiles for Canadian painters at auction

We conduct an empirical analysis of the effect on the auction price of a Canadian painting of the age of the painter at the time of creation of the painting. We consider over two hundred artists, active over the entire history of Canadian art, who are pooled in the estimation of a hedonic regression in which a polynomial function in age enters as a regressor along with several other control variables. We consider the possibility that the age–price relationship has changed over time by: (a) estimating separate age–price functions for three generational groups of artists—those born before 1880, between 1880 and 1920, and after 1920 and thus coming of age in the world of post-war ‘contemporary art’ and (b) estimating a parameterization where the shape of the age–price profile is permitted to change continuously depending on the year of birth of the artist. Our principal result is that artists born more recently tend to ‘peak’ earlier in their careers than those of previous generations.     

Evaluating the effects of direct support on the economic situation of artists

The paper deals with the relationship between direct public support for artists and the economic situation of artists. The empirical findings stem from a research project on the situation of artists in Finland. Some problems connected with obtaining relevant data on artists' economic situation are presented. The effects of direct financial support granted to individual artists on their income level and income discrepancies are illustrated with different patterns of impact. A brief presentation of the goals and measures of public policy towards artists in Finland is given, and the relationship with policy objectives and income effects of direct artists support is discussed. Two issues relevant for evaluating artist policy are raised: the need to account for the fundamental differences between art fields and artistic occupations, and the need to study the actual functions grant income has for the artists.     

The prosumer economy and the sex industry: the creation of an online community of sex prosumers

ABSTRACT

In this article, I discuss how changes in the economic infrastructure of mass consumption have changed the values and attitudes of consumer culture. By focusing on an online community of Israeli sex consumers and applying the theoretical framework of the prosumer economy, this article suggests its innovative potential for understanding the intersections of cyberspace, capitalism, and sex work consumption. Using the context of the dynamic cultural terrain of prosumerism, the article examines how commercial way of thinking is encouraged, understood, and adopted by sex consumers in the practice of purchasing sexual encounters and sharing them online. The main argument is that the online community of sex consumers has become a collaborative project in which consumers simultaneously produce and consume – that is, they become ‘prosumers’ and thus occupy positions of power within the capitalist market-place. They, therefore, not only responding to market rules but also producing them. I claim that the change in the nature of the community has impacted both the nature of online writing and the way clients perceive sex workers.     

Programmatic choices and the demand for theatre: the case of Flemish theatres

Theatre experts generally agree that the Flemish theatre has flourished artistically over the period 1980–2000. Attendance, on the other hand, has declined significantly. Following Lancaster’s characteristics approach, we identify several output characteristics of individual theatre productions. Using a panel of 59 Flemish theatres, we examine the impact on demand of both these output characteristics and of traditional determinants such as own price, income and the price of substitutes. Differences in the relevant geographical market for touring and non-touring theatres are considered. We find that the nature of the artistic output affects demand. Theatregoers prefer large productions (in terms of cast size), plays by Dutch-speaking playwrights and revivals of old productions. Own price and consumer income have the expected negative and positive effects on attendance. Observed trends toward a decreasing proportion of new plays, an increasing presence of plays by Dutch-speaking playwrights, and increasing consumer income had a stimulating effect on attendance. These trends have been offset, however, by trends toward smaller cast sizes and higher ticket prices as well as by unobserved factors captured by time dummies. The net result has been a considerable drop in attendance.

Determinants of Prices for Contemporary Art in Dutch Galleries, 1992–1998

We analyse determinants of prices for contemporary art with the help of quantitative data. The focus is on gallery rather than auction prices in the Netherlands. We model the determinants of prices on three different levels: the work of art (size, material), the artist (age, sex, place of residence, institutional recognition), and the gallery (location, institutional affiliation, age). Our main findings are that the size and material of works of art, and the age and place of residence of the artist are strong predictors of price; that differences in size and materials partly ``mask' price differences between artists; and that the variance in prices across galleries is largely explained by characteristics of the artists they represent.     

Two games in town: a comparison of dealer and auction prices in contemporary visual arts markets

The article tests a couple of hypotheses relating to markets where demand is not taken as a given, but subject to sophisticated and encompassing price-building strategies. The study uses a data set that provides quoted dealer prices for medium-sized works of 100 leading visual artists from 1970 to 2004. These data are compared with auction price results for works by the same artists. The study reports significant discrepancies with respect to the relationship between the age of artists and prices paid for their works in the two markets, and with respect to general price developments in the two markets as measured by indices.

A microeconometric study of theatre demand

We develop a model of theatre demand with learning by consuming, and test some of its implications on a large random sample of theatregoers and non-theatregoers. This seems to be the most comprehensive econometric study of demand for the theatre from individual data. We hypothesize that each time the consumer watches a play, he experiences a degree of pleasant or unpleasant surprise on the basis of which he will revise his future expectations of his own taste. The learning phase is likely to be unusually long for highly differentiated cultural goods. Our set of data contains unique information about the full price and the fixed cost of theatre, the objective quality of the outing, past experience of and taste for the theatre, and consumption of substitute leisure activities such as reading, television and cinema. Our methodology and data enable us to infer price elasticity on survey data from knowledge of theatregoing experience and taste. After controlling for many variables, we conclude that demand for the theatre is price-elastic, which contradicts previous estimates on aggregate time-series data. Moreover, we estimate demand conditional on past attendance after controlling for selectivity bias. Satisfaction reported by consumers after the last play is also estimated and interpreted as an ordinal conditional choice.     

On the Symbolic Production of Digital Markets for Cultural Goods

This paper proposes and mobilizes a cultural economic framework to study the dynamic formation of digital markets for cultural goods. Adapting Hayek's theory of price to recent developments in the field of cultural sociology, it proposes the idea that an effective price system condenses information dispersed in society, and then enters into a performative process of symbolic communication that is perceived as ‘authentic’ by the consumers. After analyzing ‘artificial’ and ‘authentic’ current strategies aimed at producing digital markets for cultural goods, which are especially sensitive to the symbolic dimension of price, the article suggests the hypothesis that the digital market has been constructed as a zero- or quasi-zero-price economic space, and that it is the offline and material market of cultural products the one that collects the higher revenues derived from the ‘authentic’ generation of value taking place in the digital marketplace.     

Selection models in the music industry: How a prior independent experience may affect chart success

The is article analyses the two main approaches for artists’ selection in the recording industry: the direct model in which large major companies directly choose new artists from the supply market, and the agency model in which small independent labels realise the first choice and, subsequently, large organisations pick their new artists among those pre-selected by independents.An empirical analysis of chart sales reveals that artists selected through the agency model exhibit a longer presence on the chart due to repeated successes, while they are slower to reach heavy success once they have entered the chart. Conversely, the direct model leads to artists with a faster path to a strong success, but the same artists have a shorter presence on the chart due to the sporadic nature of their success. The profile of artists selected through these two models is also found to be different: big international soloist stars are more frequently selected through the direct model, while national bands are more frequently selected through the agency model.The insights suggest important implications for management in the cultural industries and especially in the recording industry. Jel Codes: L82; O32     

屏幕升腾“四小龙”——浙江卫视倾力打造新一拨主持人

娱乐圈中有个有趣的现象,＂大器晚成＂＂老来俏＂的多是男星,而＂出名要趁早＂的则多是女星。其中缘由,恐怕还因男人的魅力需要时间和阅历的积淀,而女人则更依靠青春的魅力。这也就不难解释,为什么浙江卫视在打造明星主持人时,似乎有些＂重女轻男＂——去年底,浙江卫视中国蓝2.0,