Resource title

Price and death

Resource image

image for OpenScout resource :: Price and death

Resource description

How does an artist s death impact on the price of his or her works of art? We investigate this question in an infinite-horizon dynamic general equilibrium setting. Employing the open-loop Stackelberg equilibrium concept to describe the interactive behaviour of collectors and artists, we find that the art price remains at some well-defined pseudo-competitive level as long as the artist is alive. Only when the artist unexpectedly dies, the price increases on impact. This so-called death effect varies negatively with the artist s age at death. If it is well known that an artist is ailing from some terminal illness and his or her death thus does not come as a surprise, the price of the ailing artist s work increases when the news of the ailment is divulged; the price immediately jumps to the level which will prevail at the time when the artist dies.

Resource author

Jun-ichi Itaya, Heinrich W. Ursprung

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26258

Resource license

Adapt according to the presented license agreement and reference the original author.