TY - JOUR
T1 - Entry of painters in the Amsterdam market of the Golden Age
AU - Stepanova, Elena
AU - Etro, Federico
PY - 2016
Y1 - 2016
N2 - We analyze the evolution of the entry of painters and price of paintings in the XVII century Amsterdam art market. In line with evolutionary theory, demand-driven entry in the market was first associated with product innovations and a rapid increase in the number of painters. After reaching a peak, the number of painters started to decrease in parallel with a price decline and the introduction of process innovations. To test for the role of profitability in the art market as a determinant of endogenous entry of painters, we build a price index for the representative painting inventoried in Dutch houses. This is based on hedonic regressions controlling for characteristics of the paintings (size, genre, placement in the house), the owners (job, religion, value of the collection, size of the house) and the painters. After a peak at the beginning of the century, the real price of paintings decreased until the end of the century. We provide anecdotal evidence for which high initial prices attracted entry of innovators, and econometric evidence on the causal relation between price movements and entry.
AB - We analyze the evolution of the entry of painters and price of paintings in the XVII century Amsterdam art market. In line with evolutionary theory, demand-driven entry in the market was first associated with product innovations and a rapid increase in the number of painters. After reaching a peak, the number of painters started to decrease in parallel with a price decline and the introduction of process innovations. To test for the role of profitability in the art market as a determinant of endogenous entry of painters, we build a price index for the representative painting inventoried in Dutch houses. This is based on hedonic regressions controlling for characteristics of the paintings (size, genre, placement in the house), the owners (job, religion, value of the collection, size of the house) and the painters. After a peak at the beginning of the century, the real price of paintings decreased until the end of the century. We provide anecdotal evidence for which high initial prices attracted entry of innovators, and econometric evidence on the causal relation between price movements and entry.
KW - Art market
KW - Business, Management and Accounting (all)
KW - Dutch golden age
KW - Economics and Econometrics
KW - Endogenous entry
KW - Hedonic prices
KW - VAR analysis
KW - Art market
KW - Business, Management and Accounting (all)
KW - Dutch golden age
KW - Economics and Econometrics
KW - Endogenous entry
KW - Hedonic prices
KW - VAR analysis
UR - http://hdl.handle.net/10807/128555
UR - http://link.springer-ny.com/link/service/journals/00191/index.htm
U2 - 10.1007/s00191-016-0456-6
DO - 10.1007/s00191-016-0456-6
M3 - Article
SN - 0936-9937
VL - 26
SP - 317
EP - 348
JO - Journal of Evolutionary Economics
JF - Journal of Evolutionary Economics
ER -