Uncertaintiesare present in the art market business mostly regarding theappropriate pricing of the contemporary artwork and itsprofitability. The buyers of the art face a challenge of determiningart value. Knowing this, Becket and Rössel embarked on a research,to determine the criteria for the pricing of contemporary work. Intheir research, the two utilized datasets with data on art prices andinformation from the biographies of artists to publish an article,The Price of Arts: on their findings. Their main argument in thearticle is that prices accorded to works of art are largelydetermined by the reputation that tags along artists fromlegitimizing art institutions and other experts in the art field.Their study is relatively convincing as their evidence is portrayedin the data they gathered from databases on internationally renownedartists from German-speaking countries. The price and value of art inthe market correlates with the artists with access to institutions inthe art world that grant reputation. These institutions and otherexperts of art accord recognition and pass judgments to artists’works which positively impacts on art buyers. The stronger thereputation, the stronger the signal sent to the buyer.
Nevertheless,this method of determining price reveals unequal chances for theartists. The method rewards artists with access to legitimizinginstitutions whose works pay off whereas many artists are left outand struggle with unemployment and low returns compared to theirquality of work. The factor of the physical quality of the work andthe cost incurred in its production is omitted. In primary markets,the price keeps on varying through the gradual progress of the artistwhereas, in secondary markets, prices vary depending on theindividual artist. Investing in the art business is not quiteprofitable.
Thearticle is a revelation with great relevance to art buyers, artistsand potential investors since it guides them to fathom on the reasona certain art is accorded a different price from the other. In theend, it is not about the material used in the production or itsscarcity, but it`s uniqueness largely dependent on artistic value.This makes the art business complicated to some extent since it isnot definite on its prices for the investors neither does itguarantee an instant profit to the artists themselves.