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Social psychology research in the commercial art market: challenges and opportunities

Ruxiao Yang

Article ID: 3126
Vol 9, Issue 10, 2024, Article identifier:

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Abstract

This study investigates the social psychological dynamics of the commercialized art market, employing a multifaceted approach to uncover the complex interplay of factors influencing artistic valuation and market behavior. Utilizing data from 500 top-selling artists and 1000 major collectors over a decade, we conduct quantitative analyses, including time series analysis, principal component analysis, and network structure examination. Our findings reveal the primacy of artist reputation and market demand in price formation, accounting for 45% of the variance in artwork prices. We identify cyclical market patterns aligned with major auction events and economic trends. Network analysis exposes the critical role of intermediaries and community structures in market interactions. Addressing endogeneity concerns through instrumental variable regression, we establish a robust causal link between artist reputation and market outcomes. This research provides valuable insights for artists, galleries, collectors, and investors, offering a comprehensive framework for understanding the contemporary art market's complexities. Our study contributes to the growing body of literature on art market dynamics, highlighting the intersection of social psychology, economics, and cultural trends in shaping artistic value.


Keywords

Art market; Social psychology; Valuation dynamics; Network analysis; Artist reputation; Market demand; Endogeneity; Time series analysis; Principal component analysis; Cultural economics

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DOI: https://doi.org/10.59429/esp.v9i10.3126
(19 Abstract Views, 3 PDF Downloads)

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