The manner in which buyers, sellers, and dealers conduct art transactions appears, at least initially, to contradict established economic principles. This blog post seeks to identify and illustrate this phenomenon using examples from the art attribution process. Indeed, the possibility that a purchased work was once forged or wrongly attributed threatens the value of many art transactions—and even more troubling is that the current legal framework seldom is able to provide relief and has, in many situations, even created market failure. As will be demonstrated, the result has been a type of market inefficiency that runs contrary to marketplace principals.
This post was originally published on the Cardozo Arts & Entertainment Law Journal website on January 29, 2014. The original post can be accessed via the Archived Link button above.
Day, Gregory, "The Economic Puzzle that is the Art Market" (2014). AELJ Blog. 33.