The success of art galleries: a dynamic model with competition and information effects

Prinz, Aloys; Piening, Jan; Ehrmann, Thomas

doi:10.1007/s10824-014-9217-2

Cited by 19 publications

(29 citation statements)

References 47 publications

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“…According to Prinz et al (2015), let Y i ¼ 1 X i be the success measure of a pop song in the Top 2000 charts for song i, i = 1, … N, such that i is also the rank of the song: 5…”

Section: Interpretation Of the Empirical Resultsmentioning

confidence: 99%

“…A general mean-reverting stochastic process that represents the dynamics of song success can be written formally as (Prinz et al 2015):…”

Section: Interpretation Of the Empirical Resultsmentioning

confidence: 99%

“…In applying the dynamics defined by Eq. 7to the Top 2000 charts, it is very helpful that the resulting distributions of success values for different parameter values of k and h are known (for details, see Prinz et al 2015). Table 5 shows the constellation between the stochastic process and the distribution of the success variable it generates.…”

Section: Interpretation Of the Empirical Resultsmentioning

confidence: 99%

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Rankings as coordination games: the Dutch Top 2000 pop song ranking

Prinz

2016

J Cult Econ

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The Dutch Top 2000 pop song ranking has been broadcast each year since 1999 between Christmas and New Year's Eve. As a nationwide event, it receives cult status in the Netherlands. In this paper, it is argued that rankings are coordination games. To demonstrate this, statistical methods are applied, first to analyze the extent to which competition prevails between pop songs. While conventional charts collect pop song rankings on a commercial basis, the Top 2000 ranking is voted on once a year. Moreover, a very wide range of songs is allocated to 2000 positions. The ranking displays tremendous stability among the top five songs over the years and demonstrates the importance of superstardom. Moreover, a detailed statistical analysis provides evidence that there is hardly any competition among the most liked 100-150 songs. The empirical distribution of these songs follows a Pareto distribution, whereas the songs up to rank 1500 are exponentially distributed. These different distributions may be explained by two different voting strategies, namely voting for the individually most liked songs and voting to maximize the social value of the Top 2000 by taking account of the assumed preferences of other voters. In this manner, superstardom acts as a coordination device in a large-scale coordination game.

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“…According to Prinz et al (2015), let Y i ¼ 1 X i be the success measure of a pop song in the Top 2000 charts for song i, i = 1, … N, such that i is also the rank of the song: 5…”

Section: Interpretation Of the Empirical Resultsmentioning

confidence: 99%

“…A general mean-reverting stochastic process that represents the dynamics of song success can be written formally as (Prinz et al 2015):…”

Section: Interpretation Of the Empirical Resultsmentioning

confidence: 99%

Section: Interpretation Of the Empirical Resultsmentioning

confidence: 99%

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Rankings as coordination games: the Dutch Top 2000 pop song ranking

Prinz

2016

J Cult Econ

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“…On one hand, new artists entering the market are unknown and the products they provide (works of art) require a lot of explanation and evaluation. On the other side of the market, collectors and investors are unfamiliar with both the artist and his or her work, so it is the gallery owner's job to close the gap between artists and collectors/investors [48]. In their relationship with artists, gallery owners perform crucial functions: they promote the work of the chosen artist, put it on the market and sometimes determine the market value of their work, thus accepting a variable level of risk, which can be high on many occasions.…”

Section: Discussionmentioning

confidence: 99%

“…As [1] pointed out, contrary to other behavioral channel models focusing on the manufacturer-retailer relationship, the art market also needs to account for a very powerful end customer: the art collector. In these relationships, the most influential element of the market is the reputation of both the artists and their gallerists [1,11,12,48].…”

Section: Discussionmentioning

confidence: 99%

Sustainable Management of Contemporary Art Galleries: A Delphi Survey for the Spanish Art Market

Ronco

Torralba

2019

Sustainability

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The art market operates in a very different way from conventional economic markets, ranging from its behaviors of supply and demand, the trading of goods, and the economic agents intervening in it. In addition, it is a highly unregulated market, with very little standardized information in economic terms. This paper focuses on art galleries, which are the most influential intermediaries in the Spanish primary contemporary fine-art market and perform a role that goes beyond the mere distribution of works of art. This study develops and applies a prospective methodology based on the subjective information compiled by experts, known as the Delphi method, to identify and evaluate the factors that determine the current situation and future outlook for Spanish contemporary art galleries. The results show, on one hand, that the method employed constitutes a valid option to provide reliable information. In addition, they show that the survival of these organizations will depend on their ability to adapt to the changing conditions of the economic environment, reactivating and internationalizing demand, and redirecting their business model towards sustainable management by implementing appropriate business management models and techniques.

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On the allocation of talents in the contemporary art market

Gaetano¹,

Mazza

Mignosa

2018

J Cult Econ

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This paper investigates the selection of artists by a gallery in presence of adverse selection and moral hazard. Artists have heterogeneous creativity and are divided into two groups: those who innovated and those who did not. Artists reveal their type by participating in an auction where the employer offers a menu of contracts specifying output and wage. When the gallery has monopolistic power, price is set to give a premium to innovation. Thus, when that gallery has to choose between two low-creativity artists, it hires the artist who innovated, in a Bayesian Nash equilibrium. In contrast, a gallery with little market power facing the same alternative hires the artist who did not innovate because it cannot exploit the innovation premium. This result indicates that a segmented market with gatekeeping, in which some artists have no opportunity to bid and join a top gallery, has a negative impact on innovation. The analysis also shows that "superstar" artists (combining creativity with innovation) are more likely to end in top galleries. On the contrary, young talented (creative) artists are relatively more frequently found in galleries with little market power.

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The success of art galleries: a dynamic model with competition and information effects

Cited by 19 publications

References 47 publications

Rankings as coordination games: the Dutch Top 2000 pop song ranking

Rankings as coordination games: the Dutch Top 2000 pop song ranking

Sustainable Management of Contemporary Art Galleries: A Delphi Survey for the Spanish Art Market

On the allocation of talents in the contemporary art market

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