This paper published in the Cardozo Law Review Vol 33 (6) discusses whether or not investment in art can ever be seen as rational, and explores how the contemporary art market is expanding to include not just works of art, but art as a form of cultural practice. Audiences are no longer content simply to visit museums, galleries, and other cultural institutions. They want to participate, but why are art fairs, biennials, and museum events so popular?
The contemporary art market has always been segmented, and reputation and display have been important motivators for rich collectors and for those who set the prices and assign value. However, the vast majority of participants in the expanded market for art are not purchasers and their relation to value is rather different.
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