1) The value of art

- Value in economics = true worth of a good of service aka "the highest amount at which a
good would be exchanged between a buyer and a seller"
- Different factors influence value in art “popularity, size, historical importance, authenticity
etc.
- Value =/ price  value of a good on the market, at which price the buyer wants to buy a
thing.
- Example, wheeler paintings  high value because of popularity of the artist, and death effect
also

2) Murder and motives

- Murder can happen for different reason (War, Love disappointment, accident…) and different
motives (Revenge, political reasons) and sometimes just because you like to kill
- In economics, a agent is rational so before committing a crime, he will ask himself the profit
and the cost of a murder. If the profit are higher than the cost, then the murder happens
- Incentives also count in the equation  factor that motivate people to take action
- In reality, murder can happen without any rational reason (psychopath)
- Example of the book: Discussion between Abraham and Spearman, Ramos murder

3) Art Market
- Supply and Demand classic
- Paintings flip, nft flip (buy low sell high)
- But little twist: conspicuous consumption and Veblen effect
- + Auction very present
- Death effect works well (recent rappers in music industries like xxxtentacion, juice world)
- Example : Ramos wanted to benefit from the death effect and sell wheeler paintings)

4) Opaque pricing in the world of art

- "Opaque pricing" refers to a situation where the pricing structure of a product or service is
not easily understandable or transparent to the consumers or market participants.

- Asymetrical information ex ante so adverse selection

- Difficult to judge the value of a painting if we are not professional and no advice like real
estate for example
- Don’t really now who set the price (especially on the first market)
5) Auction

- **Market Dynamics:** Auctions play a crucial role in the art market, providing a platform for buying
and selling artworks through competitive bidding.

- **Price Discovery:** Auctions contribute to price discovery in the art world, as the bidding process
reflects current demand and establishes market value for specific artworks.

- **Global Reach:** Art auctions, especially those conducted by major auction houses like Sotheby's
and Christie's, have a global reach, attracting collectors, investors, and art enthusiasts from around
the world.

- **Competitive Environment:** The competitive nature of auctions can lead to both high prices for
sought-after pieces and opportunities for buyers to acquire artworks at potentially favorable terms.

- **Secondary Market:** Auctions also serve as a significant component of the art secondary market,
allowing collectors to sell works they own, contributing to liquidity and market turnover.

Fund raising : Uni and Museums

- **Philanthropic Support:** Fundraising is a vital activity for US universities and museums, relying on
philanthropic support from donors to finance various initiatives.

- **Endowments and Campaigns:** Institutions often conduct capital campaigns to raise substantial
funds for projects, scholarships, research, and infrastructure, while endowments provide a long-term
financial foundation.

- **Alumni Engagement:** Universities emphasize alumni engagement in fundraising, fostering a

sense of community and encouraging graduates to contribute to their alma maters financially.

- **Grants and Corporate Sponsorship:** Both universities and museums seek grants from
foundations and corporations, fostering partnerships to support educational and cultural endeavors.
Corporate sponsorships, in particular, provide funding for specific programs or events.

7) Jackson Pollock and Tristan Wheeler

- First he did not took inspiration from pollock

- He stopped because he thought his work was too conventional. He stopped for a year and
took inspiration from Pollock (chose between Picasso and pollock) and that worked well
- Like pollock, he wasn’t painting but dripping and pouring paint, which was pollock’s signature
technique and he wanted his paintings to reflect the color itself and not the reality

- Then detached from pollock in the technique (use paintings spray) and then wanted to
escape galleries (which he taught were stealing money out of his work) and create free art via
computers and printers that was connecting directly with his fans. (nft)