Statistical Analysis of Artwork Price Distribution

Abstract

The phenomenon of the art market attracts the close attention of the scientific community abroad. In the mid-1960 s foreign experts proved that long-term economic growth cannot be achieved without the presence of a seemingly unprofi table cultural sphere. This was followed by scientific disputes about the financial prospects of artwork values. It is worth noting that a single approach has not yet been developed. Nevertheless, everyone agrees that artworks are shelters for the capital. The present study is divided into two parts. The first is to determine the specific quantitative indicators of the investment potential of artworks, namely: What is the average income from art investments? Is the probability of the partial or complete loss of capital high or whether it is possible to establish a risk-free period for the monument’s resale? The second aim is to find the profiling factor defining the art price. In other words, what is the reason for higher or, conversely, lower profits from the art resale: The initial estimate of the market? The artist’s popularity? Fashion? Or the transaction costs of acquisition? Refs 6. Tables 13.