By Daniella Victoria Paretti
Abstract
In a 2021 report published alongside Art Basel and UBS, renowned cultural economist Dr.
Clare McAndrew posited that the value of art sales in 2020 amounted to an impressive $50 billion
(although this actually marks an over 10-year low). It is no secret that the global art markets are
extremely lucrative, attracting the interest of industry magnates and business tycoons alike.
Though it is important to note that art markets are historically quite distinct from their normal good
counterparts — the sector is laden with issues regarding transparency, high barriers to entry, and
hiding of wealth. Amidst the COVID-19 pandemic, however, the tides began to turn; online
platforms for museums, auction houses, and galleries were employed more than ever before,
effectively modernizing the antiquated industry and expanding its reach to new consumers. How
has this trend of digitalization changed and improved art markets? More specifically, how can data
analytics and other technological resources serve the interests of private galleries? Using sales data
from a parent gallery with multiple locations across the United States (each displaying similar
works/artists), I have conducted a number of qualitative and statistical analyses to identify key
differences between the West and East coast locations. In short, the gallery on the West coast sold
more works and at a lower average cost than its counterpart, providing key insights into this local
market’s consumer base. Beyond this, factors like size, medium, and artist gender were found to
have statistically significant effects on the ultimate sale price and turnover rate of works. My
findings suggest that means of data analytics should be utilized by all actors in the art markets to
optimize their approach to business, as well as understand their consumers better than ever before.
Professor Michelle Connolly, Faculty Advisor
Professor Hans Van Miegroet, Faculty Advisor
JEL classification: Z11, C10, J11, O33
