ECON 7: Economics of Fine Art

Course Description

This seminar course will consider the economics underlying the unregulated and highly inefficient markets for fine artworks - primarily paintings, drawings, and sculpture. We shall apply traditional statistical and economic tools to understand art markets with special considerations for art-specific practices and conditions such as art authentication, auctions, prevalence of fakes, information asymmetry, the influence of collecting by public non-commercial museums, donation of works to museums, dealer history and reputation, and much more. Students will have short weekly homework assignments and write a five-page final paper.