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 Codes: Z11, C10, J11, O33

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